J.P. Morgan Advisors, UBS Broker Migrate to RIAs in California and Texas
Three advisors at J.P. Morgan Securities and UBS Wealth Management USA separately jumped to join, or start, registered investment advisory firms in the last two weeks, while a veteran Wells Fargo Advisors broker also continued the migratory trend to a fee-only, fiduciary-standard practice.
Hays, who began her registered rep career in 2007 with Ameriprise and did stints with J.P. Morgan in New York and London as an analyst prior to joining J.P. Morgan Private Bank in San Francisco in 2014, declined to comment on her move.
Cresset was founded in Chicago in March 2017 by two private equity bankers who specialize in sourcing pre-IPO deals and other alternatives for wealthy clients, according to its website, which lists 30 advisors. It managed about $4.8 billion in client assets as of the end of April, according to its most recent Form ADV filing with the Securities and Exchange Commission.
David C. Gonzalez, who similarly worked at J.P. Morgan’s Chase Investment Services Corp. as a branch-based broker in Houston for eight years, joined STA Wealth Management in that city on October 22, according to his registration history. STA, formerly known as Streettalk Advisors, last month recruited UBS President’s Club-level advisor Robert Harris and fellow broker Sarahbeth Pipkin in September to its Houston office.
The RIA, formed in October 2002, manages over $1.4 billion in client assets. Gonzalez,who began his brokerage career in 2005 with Merrill Lynch in Houston, declined to comment on his move or the size of his practice.
Mary Erdoes, chief executive of J.P. Morgan Asset & Wealth Management, said in a presentation on Tuesday that she is wary about growing her division’s small core of wealth managers too quickly.
“I could hire 2,000 financial advisors,” she said at a Bank of America Merrill Lynch financial services conference, “but what would I get?…It’s really hard to find 1,000 people that have J.P. Morgan first-class business in a first-class way….Each and every human being that we hire is hand-picked, hand-trained (for a) long time period before we let them out.”
Asked about “inorganic” growth, she said J.P. Morgan is constantly evaluating acquisitions but has been cautious. “The single most important thing for J.P. Morgan to succeed in the future is to keep the culture,” she said.
Separately, Anne B. Johnston, who spent her 12-year brokerage career with UBS in Beverly Hills, set up Created Wealth Advisory at the end of September. Her Los Angeles RIA firm is supported by TruClarity Wealth Advisors, which provides compliance, human resources, custodial and other operational services to breakaway advisors.
Johnston, who Forbes ranked #115 on its 2019 Next Gen Best-In-California Wealth Advisors list, was overseeing more than $100 million of client assets, she said in a news release.
“After many years working in the traditional finance world, it became clear that we would need to make a change in order to fully deliver on the vision we had to serve clients’ best interests,” she said in a prepared statement.
Johnston declined to comment beyond the release.
Wells Fargo Advisors in recent weeks also lost another veteran broker to the independent advisory world, but kept him in-house through its new First Clearing RIA channel affiliated with custodian Trade PMR.
David Mattern, who had been a producing branch manager with Wells and predecessor firm A.G. Edwards in Lawrence, Kan. for more than 18 years, set up Mattern Wealth Management with fellow advisors Kyle Cross and Marcus Mattern in mid-October in the same building as thier previous practice. David’s brother Perry, who is based in Denver, made a similar move earlier this year, leaving his separate brokerage practice but staying within the Wells system.
David Mattern ranked #14 in Forbes’ 2019 “Best-in-Kansas” list of wealth advisors, with $242 million of assets under management.
“Clients were able to seamlessly transition to our new independent firm with only a few signatures,” he said in a prepared statement. “Account numbers and standing instructions stayed intact, and they remained fully invested.”
The Kansas team is the sixth known to have migrated from Wells Fargo Advisors to the RIA channel the firm opened earlier this year. Wells expects to end 2019 with 11 teams in the clearing and custody RIA network, First Clearing President John Peluso said in August.
A J.P. Morgan spokeswoman declined to comment on the departures of Hays and Gonzalez. A UBS spokeswoman did not respond to a request for comment on Johnston.
—Jed Horowitz contributed to this story.