Wells Fargo Loses $369M FA Team to Ameriprise
David Neihart, his son Brent Neihart, Douglas Royle, Camden Fells, Eric Wynkoop and Johnnie Huff collectively managed $369 million at Wells Fargo, according to the press release. They join the employee track at Ameriprise.
“We serve clients in 22 states, so we were attracted to Ameriprise’s strong reputation, brand and financial stability,” David Neihart says in the press release.
Wells Fargo settled with regulators for $190 million last year following revelations that thousands of employees at its retail banking unit had opened millions of bogus credit and debit accounts without customer authorization, and the scope of the scandal has turned out to be far wider. Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network, meanwhile, have landed in the regulators’ crosshairs earlier this month. Finra ordered the units to pay back more than $3.4 million over unsuitable sales of volatility-linked exchange-traded products.
While the scandal at the banking unit doesn’t appear to have spread to the firm’s wealth management unit, Wells Fargo Advisors, its reps have been steadily leaving the firm for rivals. In the most recent quarter, however, the wealth unit seems to have stemmed the flight and was able to add 37 new advisors, although its advisor count as of the end of September was 3.5% lower than a year ago.
Ameriprise, meanwhile, has been actively luring advisors away from its rivals in recent months. In September the firm picked up two advisors from Wells Fargo Advisors who managed $193 million, as well as three advisors from Morgan Stanley. Two Edward Jones reps overseeing $363 million jumped ship to Ameriprise in August. In July, Ameriprise nabbed three Merrill Lynch advisors collectively managing $463 million. And in June Ameriprise scooped up 15 Wells Fargo Advisors reps who collectively oversaw $347 million.