More changes at Wells Fargo Advisors, this time to management
The bank continues to cut costs and simplify its broad wealth management business. Just last month, Wells Fargo said it was selling its asset management business, with $600 billion in assets, to two private equity managers.
The 12,000 registered reps and financial advisers working at Wells Fargo Advisors on Thursday were told to brace for more change at the group, with the bank cutting the number of regions and managers from 12 to eight.
Such a move had been widely anticipated, as Wells Fargo Advisors and its parent bank, Wells Fargo & Co., execute the cost cutting and streamlining plan of its new CEO Charlie Scharf.
Just last month, the bank said it was selling its asset management business, with $600 billion in assets, to two private equity managers for $2.1 billion. It is also cutting its international wealth management business and in October said it laid off a “sizable group” of salaried advisers.
The bank and its assorted business lines, including wealth management, have been under intense pressure since revelations in 2016 that Wells Fargo bank employees had secretly created millions of unauthorized accounts in the names of customers without their consent. Wells Fargo Advisors has seen a net decrease of about 2,000 advisers since then, as many have jumped ship to competitors or retired.
Advisers for the most part will not feel a direct impact due to the change in management structure and will continue to report to the same local manager. The realignment will take at least several weeks.
“We are evolving into a flatter, more nimble organization that brings all our services to clients and makes it easier for them to do business with us and for advisers to support clients in doing so,” wrote a company spokesperson in an email.
Morgan Stanley targets $10 trillion in AUM: Gorman
The wirehouse reported new records for net new assets of $105 billion, up 43% from the end of December and an increase of 183% from the same period a year earlier. 'My target is $10 trillion of money under management,' said CEO James Gorman. 'I've told the team internally, they hate that.'
Merrill Lynch client balances climb 31% year over year
While assets increased, adviser head count at the thundering herd dipped. The company is looking to expand in key markets like San Francisco, Florida and another half-dozen locales.
Wells Fargo adviser head count slips 8% year over year
The decline is expected to continue over the next six months as the bank closes its international wealth management business. The embattled bank recently revised how it tallies its adviser head count total and this year began including about 800 to 900 private bankers and portfolio managers.
Finra bars ex-Goldman Sachs banker after expense report issues
Goldman had discharged Jared Ailstock in 2019 after he faced allegations of inaccurate business expenses reimbursement reports. Finra barred Ailstock for not appearing to testify in its investigation of the matter, according to the order.
UBS loses $371,000 claim linked to options strategy
UBS has been hit with a rash of arbitration claims over strategies investors say damaged them, and most recently it saw a wave of investor complaints over Puerto Rico bonds and bond funds.
