Cetera Financial Group and Wells Fargo each notched key recruiting wins on Tuesday, with Cetera adding a three-decade veteran from B. Riley as Wells Fargo swiped north of $800 million in new advisor assets from three rival firms.
Cetera Financial Group has welcomed Michael Zawatsky and his seven-person team at Oasis Asset Management Group, who collectively oversee approximately $600 million in assets under administration.
The Cleveland-area group, which includes five financial advisors and two support staff, joins Cetera’s Summit Financial Networks advisor community from B. Riley Wealth Advisors, the RIA arm of embattled financial services firm B. Riley.
Over the past year, B. Riley has seen a wave of advisor departures, with nearly half of its Boca Raton office reportedly joining competitors and other teams moving to firms such as Kestra Advisory Services and Prospera Financial Services.
These exits have coincided with B. Riley’s efforts to manage a sizeable debt load – which at one point amounted to $2 billion – navigate SEC investigations, and address the fallout from past failed investment ventures.
In the 12 months leading up to March, the firm’s share price reportedly dropped more than 68% as it sold off parts of its wealth management business to raise cash, though it has since improved that record to achieve a roughly 15% increase over year-ago levels.
Zawatsky said in the announcement that the decision to join Cetera was shaped by the firm’s combination of scale and a boutique approach to service.
“With Cetera we felt a strong sense of stability because of its size along with the small-firm feel of Summit which provides the boutique services we’re used to,” the 31-year veteran advisor said.
Tom Halloran, Cetera advisor channel leader, said the addition of Zawatsky’s team reflects the firm’s ongoing commitment to supporting advisors focused on client service.
Meanwhile, Wells Fargo Advisors Financial Network (FiNet) revealed it has added five financial advisors managing a combined $879 million in client assets, with the new hires joining three existing FiNet practices from outside competitors.
The additions announced Tuesday include James Leonard and Daniel Mason, who bring $404 million in client assets and nearly 60 years of experience to Millennium Private Wealth in Raleigh, North Carolina. Their team, coming from UBS Financial Services, also includes Kristen Schaale and Alana Mason.
In the same city, Sullivan & Associates Wealth Management welcomed ex-Osaic Wealth advisors Brian Carr and Phil Romano, who manage $324 million.
Meanwhile, Donald Stegall, previously with Merrill Lynch, joined Heirloom Wealth Advisors in Wilmington, Delaware, overseeing $151 million.
The expansion comes as Wells Fargo continues to emphasize advisor recruitment and growth in its independent channel. During its January earnings call, the bank’s chief financial officer, Michael Santomassimo, reiterated the company’s focus on onboarding more independent advisors and expanding its independent brokerage channel.
“To drive customer growth in the consumer businesses, we plan to continue scaling our marketing efforts, modernizing our branch footprint and increasing the number of premier bankers and financial advisors,” Santomassimo said on the call. He added that the company is “focused on onboarding more independent advisors as we continue building out our independent brokerage channel.”
Farhad Firoozi, head of recruiting for FiNet, said in a statement Tuesday that “momentum continues to build around our independent offering with a growing number of advisors seeking to elevate their clients’ experience by aligning with established FiNet practices.”
Recent research from Deloitte with participation from FiNet found two-thirds of independent advisors on average (67%) are planning acquisitions within the next two years, as they look to expand their client base and market presence.
Regulators found Bank of America's monitoring software had a known flaw Merrill left uncorrected for years.
While AI has become a go-to research tool for affluent investors, new HSBC research suggests human advisors remain the deciding voice when investment decisions are made.
A 5-4 ruling preserves the Federal Reserve's independence for now, but the legal fight over presidential removal power is far from settled.
For years, large firms have been facing penalties and questions from regulators over interest rates for clients’ cash accounts.
Market volatility can be stressful, but it also represents opportunity for advisors and their clients.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
