Advisers managing $600 million leave Morgan Stanley to start RIA firm

The wirehouse advisers create independent wealth management firm We Are One Seven in Cleveland
MAY 18, 2016
A group of advisers has left Morgan Stanley to create We Are One Seven, a registered investment advisory firm based in Cleveland. Todd Resnick, Michael Mawby, Stuart Gertman, Bruce Greenwald managed about $600 million in assets for about 500 clients at Morgan Stanley, according to a statement Thursday. They started the firm with MGO Investment Advisors' Ronald Gross, Richard Gross and Paul Orchosky. “We broke away Friday,” Mr. Resnick, president of We Are One Seven, said of the decision to leave Morgan Stanley. “It was the right time for all of us to take more control of our business and how we'd deal with clients.” The former Morgan Stanley advisers wanted new technology and investment options, according to Mr. Resnick, who said We Are One Seven will be working with Morningstar to give clients daily transparency surrounding their assets and account performance. TD Ameritrade will be its custodian, he said, adding that he likes the firm's adviser workstation, which gives an overview of clients' asset allocation, performance and financial planning. Mr. Gross will serve as CEO of We Are One Seven, while keeping his CEO position at MGO Investment Advisors, a retirement plan consulting firm. We Are One Seven is developing a culture focused on financial, mental and physical health, according to Mr. Gross, who said the RIA firm is looking at ways to bring life experiences beyond money to its advisers and clients. The new wealth manager also has an office in Park City, Utah that's led by Mr. Greenwald, one of the former Morgan Stanley advisers. The firm sees potential hiking opportunities and other outdoor activities for its advisers at the location, said Mr. Resnick. Christine Jockle, a spokeswoman for Morgan Stanley, confirmed the departures and declined further comment.

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