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Wells Fargo Loses Reps to Raymond James, Steward Partners, Baird

May 9, 2018

Wells Fargo’s financial advisors continue fleeing in droves as the company’s wealth management units are under regulatory scrutiny over its sales practices. Most recently, the company lost several veteran representatives collectively managing well over $1 billion to Steward Partners, Raymond James and Baird Private Wealth Management.

David Elwood and Richard Elwood have joined Steward Partners, which is affiliated with Raymond James’ independent channel, ThinkAdvisor writes.

The pair previously oversaw $110 million at Wells Fargo. David Elwood had been in the industry since 1995 and with Wells Fargo since 2009, according to his BrokerCheck profile.

Richard Elwood had been in the industry since 1978 and with Wells Fargo since 2009, according to his BrokerCheck profile.

Separately, Donald Simpson, a 37-year veteran of the industry, has joined Raymond James’ Bloomfield Hills, Minn., office, according to AdvisorHub. Simpson’s six-person team had around $2.2 million in annual production on around $300 million in client assets while at Wells Fargo Advisors, the website writes. Simpson had started his financial services career at Wells Fargo predecessor Prudential Securities in 1980, AdvisorHub writes, citing BrokerCheck. And in Macon, Ga. Raymond James picked up Teresa Combs, who had joined Wells Fargo predecessor A.G. Edwards in 2006, according to the website.

Meanwhile, in Tucson, Ariz., Irving Mindes and William Fedor have joined Baird, InvestmentNews writes. Mindes had joined Wells Fargo predecessor A.G. Edwards in 1993, while Fedor started his securities industry career at A.G. Edwards in 1994, according to the publication. The pair managed $566 million at Wells Fargo Advisors, InvestmentNews writes.

Wells Fargo seems to have been consistently shedding advisors ever since the 2016 revelations that employees in its retail banking unit opened millions of bogus credit and debit accounts, even though the wealth management unit mostly avoided regulator scrutiny and controversy for over a year following the $185 million settlement the firm reached with regulators over its banking scandal.

(Getty)

But the rate of advisor departures appears to have accelerated since regulators began probing Wells Fargo’s wealth management units directly earlier this year. Raymond James has been a major recipient of Wells Fargo refugees. Recently Steward Partners picked up the Sedoric Group, which managed more than $350 million, for example. In the last few weeks, Wells Fargo has also lost representatives to Janney Montgomery Scott, UBS, RBC Wealth Management, First Republic Bank and BNY Mellon.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.
  • To read the AdvisorHub article cited in this story, click here.
  • To read the ThinkAdvisor article cited in this story, click here.