$2.5 billion adviser duo fired by Merrill Lynch lands at Stifel
A team of elite advisers who was fired last month by Bank of America Merrill Lynch over private securities transactions has found a new home. (Plus: The team plans to fight back.)
A team of advisers who was fired last month by Bank of America Merrill Lynch has found a new home at Stifel & Co. Inc.
The two advisers, Stephen S. Brown and James P. Goetz, previously managed some $2.5 billion in assets as part of a select group of around 150 teams who served clients with around $10 million or more in investible assets at Merrill Lynch.
Based on their assets prior to their termination, the duo is one of the largest wirehouse teams in recent years to move to Stifel, which has around 2,000 advisers, according to InvestmentNews’ Advisers on the Move database.
In an email explaining his decision, Mr. Brown wrote that the team had interviewed with a dozen firms across various channels in the past 30 days. They decided on Stifel, despite the fact that it had no presence in the upstate New York market. Their firm was based in Pittsford, N.Y.
Mr. Brown, who met with Stifel’s chief executive, Ron Kruszewski, and other executives, praised Stifel for owning a bank, but not “being owned by one.”
“They bend over backwards to make it a firm that advisers want to work for,” he added.
Mr. Brown wrote that he expected that other wirehouse advisers would follow their lead, especially as bonuses handed out to retain top advisers during 2008 and 2009 mergers began to wear off.
“It reminded me of the way things were 25 years ago when I started in the business ,” Mr. Brown wrote. “It is extremely refreshing, and my best guess is that when all of the ‘transition’ bonus payments go away next year, Stifel will be adding to the 2,000 advisers dramatically.”
A Merrill Lynch spokesman, William Halldin, declined to comment.
Mr. Brown and Mr. Goetz had been in limbo since they were fired by Merrill September 9 over “conduct related to not disclosing private securities transactions,” according to disclosures made by Merrill Lynch on the advisers’ BrokerCheck records.
Their attorney, Thomas B. Lewis of Stevens & Lee, said the two had only acted in their clients’ best interest and that the team is weighing legal action against Merrill Lynch for wrongful termination.
Neither Mr. Lewis nor Brian Spellecy, a spokesman for Stifel, were able to immediately return a request for comment for this story.
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