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UBS Team Jumps Ship, Citing Wirehouse’s Broker Protocol Exit

December 22, 2017

Kestra Private Wealth Services has recruited a team of advisors from UBS Financial Services, WealthManagement.com writes — and UBS’s exit from the Protocol for Broker Recruiting had much to do with their decision to leave.

Chandler, Ariz.-based Modernize Wealth oversaw $68 million and produced $800,000 annually while at UBS, according to the web publication.

“With the announcement of broker protocol, it didn’t seem like a client-centric decision,” Brandon Hebert, wealth advisor and chief marketing officer at Modernize, tells WealthManagement.com. “When they got out of protocol, you could say it was to keep advisors. I think it was probably more of a firm-first decision, not a client-first decision.”

Kestra PWS CEO Rob Bartenstein, meanwhile, says in a statement that the Modernize team “were frustrated with institutions putting themselves before the needs of clients,” according to the web publication.

Last month UBS pulled out of the industry accord set up in 2004 to let advisors take some client data when leaving their firms, following Morgan Stanley, which announced its decision to leave the protocol in October.

Earlier this month, Merrill Lynch announced plans to remain a signee. [http://financialadvisoriq.com/c/1813223/211523]

Wells Fargo Advisors, the only other wirehouse, has so far remained silent on the issue.

Meantime, United Capital Financial Advisors has acquired Payne Wealth Partners, bringing United about $530 million in client assets and 13 new employees, according to a press release from the firm.

Founded by Taylor Payne in 1989 as a fee-only firm, Payne Wealth is now co-owned by Ann Pendley and Perry Moore and serves around 300 households, according to the press release.


Payne, currently Payne Wealth’s president, is joining United as a managing director, United says. Payne says in the press release he opted to join United for its institutional support and its “groundbreaking” financial life management tools.

The acquisition of Payne Wealth is United’s largest in 2017, a spokeswoman for United tells FA-IQ. The RIA now manages more than $20 billion from 88 offices nationwide, according to the press release.

By Alex Padalka
  • To read the Wealth Management article cited in this story, click here.