Former Barclays wealth management executive wins $2.7 million arb award from former firm

Thomas W. Lee claimed Barclays shortchanged him after he guided sale of advisory unit to Stifel Financial Corp.
MAY 23, 2018

A former top executive at Barclays Capital Inc. won a $2.7 million Finra arbitration award, stemming from a dispute over compensation he claimed Barclays owed him when it sold its wealth management group to Stifel Financial Corp. in 2015. Now head of investment products and services at Stifel, Thomas W. Lee alleged in his 2016 claim against Barclays Capital breach of contract, breach of implied contract and other allegations, according to the award. Mr. Lee had originally requested $3.7 million in damages and attorneys' fees in the claim. According to his LinkedIn profile, Mr. Lee was head of Barclays Wealth and Investment Management for the Americas at the time of the sale. In mid-2015, Barclays had about 180 financial advisers in the U.S. managing $56 billion in total client assets. Barclays had bought the unit with other Lehman Brothers Holdings Inc. operations in 2008 during the financial crisis, and was faulted by regulators last year for inadequate internal controls there. The details are sparse in the award, which was issued by a Financial Industry Regulatory Authority Inc. panel on Friday. But Mr. Lee's attorney, Jonathan Sack, said that Barclays Capital reneged on his client's contract and did not pay him fairly once Stifel completed the acquisition of the Barclays unit in December 2015. "Barclays breached its agreement, and the arbitration panel saw through that," Mr. Sack said. Mr. Lee "was a key man," Mr. Sack said. "He was running the entire [wealth management] group, and if he didn't act as the pied piper, the deal wouldn't have gotten done. He was an integral part of that. As a senior leader he spent many months selling and coaxing [advisers] to move to Stifel, a regional firm." "Barclays is disappointed by the decision and believes the award is unfounded," said spokesman Andrew Smith.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.