A brother-and-sister team of advisers with legacy ties to Morgan Stanley and $480 million in assets under management left the firm May 17 to become independent representatives, citing change at Morgan Stanley and an opportunity to deliver more-personalized service to clients as strong factors in making the move.
Maureen McPeek and Ralph Lynch Jr. of the Lynch McPeek Group in Glenview, Ill., have changed their registration to
Wells Fargo Advisors Financial Network LLC. The firm is the independent-broker-dealer wing of the giant bank
Wells Fargo & Co., which acquired an array of retail broker-dealers after its acquisition of Wachovia Corp. during the credit crisis.
FAMILY AFFAIR
Ms. McPeek's and Mr. Lynch's father, Ralph Lynch, retired from Salomon Smith Barney Inc. in 2007 after 43 years in the retail-securities business. Morgan Stanley bought a majority stake in Smith Barney in 2009 after its parent,
Citigroup Inc., decided to sell noncore businesses.
“We felt it was time to look around and get the best service. We felt that FiNet and going independent with Wells gave us the best opportunity to do this,” Mr. Lynch Jr. said.
“The goal was to show clients that the relationship was a "Ralph and Maureen relationship,' not one tied directly to a large brokerage firm,” he said.
“It was about owning our own business and making local decisions,” Ms. McPeek said. “We felt Morgan Stanley wasn't the same company we grew up in.”
The two advisers' “views on [Morgan Stanley] client service are contradicted by a recent poll that shows overwhelming client satisfaction of 95%, with 81% ex-tremely or very satisfied,” Morgan Stanley spokeswoman Christy Jockle said.
The two advisers see the move to an independent broker-dealer as part of the evolution of their business.
“By the early 2000s, we saw the benefit of forming a team, and we merged three books of business into one, and we continued to see the industry evolve,” Ms. McPeek said.
“More of the successful teams are looking at an independent practice,” she said.
“On the independent side, you own your own company. You have an equity stake,” Ms. McPeek said.
“You can either sell your practice or pass it on,” she said. “It's a pretty special thing to do.”
