Veteran advisers sign on with Wells Fargo; duo have $1.5m in production
Two veteran Morgan Keegan financial advisers have jumped ship and set up an independent firm with Wells Fargo Advisors Financial Network LLC.
Richard Smith and Steven Thornton, who spent more than twenty years each with Morgan Keegan & Co. Inc. in Huntsville, Ala., have launched their own firm, Smith Thornton Advisors LLC, and registered with Wells Fargo FINET Sept. 9. Executive recruiters have been targeting Morgan Keegan advisers since the firm was put up for sale by parent Regions Financial Corp. three months ago.
“This is the largest Morgan Keegan team yet to leave that I know of,” said recruiter Ron Edde, whose firm, Armstrong Financial Group Inc., was involved in the move by the two advisers. “It's been very difficult to recruit out of Morgan Keegan. Most of the advisers are taking a wait-and-see attitude.”
What they're waiting to see is whether buyer emerges for the firm — and what kind of deal they'll offer to advisers to stay put. It's been reported that Regions was seeking at least $1 billion for the firm, given that it paid $789 million for it in 2001. Potential buyers, however, surely will have to pay to keep the top producers amongst the more than 1,200 Morgan Keegan advisers.
“This market environment puts everything on pause,” said Marty Mosby, an analyst with Guggenheim Securities LLC. “Whether you're hiring someone, investing in a factory or buying a brokerage firm, it is bad timing.”
Mr. Smith and Mr. Thornton are a noteworthy get for Wells Fargo FINET. According to Eric Armstrong, owner of Mr. Edde's recruiting firm, the team generated $1.5 million in production with Morgan Keegan and worked predominantly with high-net-worth clients. Wells Fargo spokesman Kevin Kozuszek confirmed that the two advisers had joined Wells Fargo FINET, but the pair was not made available for comment as of 3:30 pm. EST.
“Whether this opens the floodgates for other Morgan Keegan advisers to leave remains to be seen,” Mr. Edde said.
