First Republic Puts Big California Producer on Leave
(Story updated in third and fourth paragraphs.)
First Republic Bank, an aggressive recruiter of high-producing wirehouse brokers, has put a $5-million broker hired three years ago from UBS Wealth Management USA on leave, according to three sources familiar with the matter.
A First Republic spokesman confirmed that Feinstein is on leave but declined to comment on the reason or on sources’ allegations that the issue may have involved plans he was making to start his own advisory firm.
Feinstein’s First Republic web biography trumpets his portfolio management skills for ultra-high-net-worth families, saying his managed account strategy is biased toward liquid investments but “where appropriate, he uses equity options to exploit volatility, generate income and reduce risk.” A well-placed source denied that Feinstein’s leave may relate to his managing of customer accounts, as AdvisorHub previously reported.
Feinstein was producing $3.75 million on $450 million in assets when he joined First Republic with a junior broker and three associates, recruiters said at the time. According to a Forbes 2020 Top Broker list, his assets under management had grown to $764 million as of this January, contributing to his ranking as #45 on its list of the best advisors in California
Revenue at First Republic’s private wealth unit rose 7.3% last quarter to $128.4 million, accounting for 14.1% of the bank’s total revenue.
The San Francisco-based company employs about 185 wealth advisors, according to a bank website, and has been priming the revenue pump with signing deals that recruiters say are among the highest in the retail brokerage industry.
It suffered a setback in June when the $16-billion-asset team that put First Republic on the retail brokerage map when it purchased their RIA, Luminous Capital, in 2012, left to set up two independent advisory firms following expiration of their non-compete contracts.
Feinstein began his brokerage career in 1999 at CIBC Oppenheimer. He joined UBS in 2003, working out of locations in Los Angeles and Scottsdale, Ariz., according to his BrokerCheck history.