Raymond James Revamps Alex. Brown Manager Ranks
(Updates with details throughout, corrects fourth paragraph to indicate that John Sutton was running a region.)
Raymond James Financial has reorganized the management ranks of its Alex. Brown division that it bought from Deutsche Bank in September 2016, replacing its regional directors in an apparent sign of dissatisfaction with the pace of growth at the high-net-worth unit and the cost of its integration.
Frank McGrail, Alex. Brown’s New York City-based Central region managing director who was in charge of about half of the unit’s 17 offices, left Raymond James on Friday, according to the BrokerCheck database and, for the first time in 30 years, is not currently registered as a broker.
John Davis III, his Winston-Salem, NC, counterpart who was in charge of Alex. Brown’s Coastal region offices in Florida and California, has given up management responsibilities and assumed the title of vice chairman. He will continue to be based in Winston Salem, N.C., where his son works with clients, and will devote his time to recruiting throughout the organization pending his retirement in 2019.
Sales management of the division’s approximately 175 brokers is now divided between John Sutton, a third New York City-based regional manager, and Brett Kellam, who was running Alex Brown’s 13-advisor Greenwich, Conn., office, two sources said.
Raymond James spokespeople did not immediately return calls to comment on the changes. Davis, Kellam and Sutton also did not respond immediately to messages left at their offices, and McGrail could not be reached.
St. Petersburg, Florida-based Raymond James bought and renamed Deutsche Bank’s U.S. wealth unit in September 2016 for about $500 million, positioning Alex. Brown as a base servicing more sophisticated and wealthier clients than those that typically patronize Raymond James-branded branches. Integrating the unit with RayJay’s systems has cost more than expected, and friction has emerged among managers in the firm’s four employee and independent broker and advisor channels competing to hire brokers, according to some recruiters.
A strong 92% of Deutsche Bank’s approximately 200 brokers joined Raymond James under the revived Alex. Brown brand, the Florida company has said. Alex. Brown today employs about 175 brokers, according to its website.
Alex. Brown has recruited at least two former brokers in recent months from UBS Financial Services in California and New York but also saw some exits in Atlanta. It also is expected to open a two-broker office in Calabasas, Calif., to house two advisers in its Los Angeles office seeking to work closer to their homes.
In another management shift earlier this month, Alex. Brown elevated Amy Rizzo, the administrative manager of its ten-broker Miami branch, to be the office’s regional executive (its term for branch manager). Rizzo joined Deutsche Bank in 2005, and first registered as a broker in 2000, when she worked briefly for PaineWebber and through 2005 with Legg Mason Wood Walker.
She replaced managing director Thomas Morris, who like McGrail was a 30-year veteran of Deutsche Bank and UBS and who was in charge of Alex. Brown’s southeast offices. He is now managing the Palm Beach, Florida, office.
James Zahringer, the former Palm Beach manager, is now a producer in the office. Zahringer, who has worked at Deutsche Bank and Alex. Brown since 2001, began his career as a broker in 1983 with Drexel Burnham Lambert and also has worked at UBS predecessor firms Kidder, Peabody and PaineWebber, according to his BrokerCheck history.
The Alex. Brown unit continues to be run by Haig Ariyan, the head of the Deutsche Bank wealth division who orchestrated the revival of the Alex. Brown name. Last week, Raymond James said that Bill Van Law, the longtime head of its registered investment advisor business that services independent financial advisers, had left the firm.