Senior Ed Jones Lifer in Kentucky Goes Indie with Raymond James
Edward Jones lost a hallmark broker in Kentucky who had been with the firm for 19 years and was overseeing about $250 million of customer assets last week.
Richard W. Hendrickson, a former community banker and certified public accountant who became a broker in 1999, left the office he opened for Edward Jones that year in Benton, Ken., a Jones spokesman confirmed.
Moving with Hendrickson were his two senior branch office administrators, Lori McGregor and Jodi Westerfield. Most Jones brokers have a single administrator, testifying to the size of Hendrickson’s book.
The broker did not return several calls for comment on the reason for his move. One person close to him said he was angered by Jones’ refusal to allow his recently graduated daughter Cayce join his team with the long-term goal of transitioning his book to her. Jones wanted him to distribute some clients to other brokers in the area, perhaps as part of its Goodknight program for seeding the accounts of new advisers.
The Jones spokesman said the firm as a matter of policy does not discuss the circumstances of advisor departures or the sizes of their books. A spokesperson for Raymond James did not return a request for comment.
Jones, whose North American network of more than 16,000 brokers in mostly single-broker offices makes it the biggest retail broker-dealer by salesforce, has been on a recruiting tear in recent years. Though its core brokerage force is made up of Jones-trained brokers, many of whom start second careers with the St. Louis-based firm, it has been trying to attract more experienced brokers to help offset the high attrition rate of its neophyte brokers.
Jones “generally loses more than half of its financial advisors who have been licensed for less than three years,” the partner-owned company said in its 2017 10-K regulatory filing. The company also is battling putative class-action lawsuits from a former African-American broker who said the firm gives minority-group brokers few opportunities to build their books and by former employees who claim its policy of clawing back training costs if they take another brokerage post within three years of being licensed is illegal.
Hendrickson’s BrokerCheck record, which has no customer, regulatory or financial event disclosures, says the Kentucky broker also maintains an office in Grosse Pointe, Mich. His biography on his Hendrickson Wealth and Retirement firm website says he enjoys fishing and hiking locally in Kentucky and in Montana, but does not mention Michigan.