Prominent RayJay Producer Fired Over UIT Sales Joins Stifel
Lynn Faust, a high-profile broker who Raymond James & Associates discharged last month over issues related to unit investment trust sales, has joined Stifel Nicolaus & Co. along with her son, Michael.
The South Carolina-based broker, who had been with Raymond James for more than 30 years and was ranked in an internal publication this year as the second-highest producer in its nine-state Southern division, registered with Stifel on Friday, according to her BrokerCheck registration records.
She and her son were terminated by the employee-division channel of Raymond James on October 17 for “concerns relating to the nature of [their] UIT activity,” according to their BrokerCheck histories. Sources within and outside the firm said they were among at least seven brokers in several states who were discharged recently for UIT-related sales that have come under regulatory scrutiny.
Spokespeople at Raymond James did not respond to requests for comment, and Faust and her son could not be reached.
Forbes ranked Faust earlier this year as one of the “top women advisors” of 2018, managing about $265 million of custodied client assets.
“Lynn and Michael are wonderful people and we are pleased they chose Stifel,” John Pierce, the St. Louis-based firm’s recruiting head wrote in an email.
The advisers will open a new office for Stifel in Greenville, S.C., near their former Raymond James office in Greer, S.C., he said.
Faust, a former grade school teacher, began her brokerage career at Waddell & Reed in 1981. She also worked at PaineWebber Inc. before joining RayJay in 1988, according to her BrokerCheck history. Her son became a broker in 1999, at the Raymond James office in Greer, according to the Finra database.
UIT sales practices aimed at generating commissions to the detriment of investors have been an examination priority of the Financial Industry Regulatory Authority for several years. The industry self-regulatory group in 2016 sent targeted exam letters to some firms seeking data on rollovers of the fixed portfolios prior to maturity. The exam focused on sales between January 1, 2014 and June 30, 2016.
Morgan Stanley last year paid Finra a fine of $3.25 million and repaid almost $10 million to customers over allegations that hundreds of its brokers recommended UIT exchanges before their two-year maturity dates between 2012 and 2015.