Forbes advisor list update: Morgan Stanley drops it, owner says changes are coming

As the end of the summer approaches, many advisors and financial advice industry executives have expressed astonishment over secret payments of $6 million to a one-time Forbes editor from a consulting firm behind the coveted Forbes’ rankings of top advisors.

Now, the fallout from that revelation is coming to the fore: Morgan Stanley Wealth Management last week told its advisors it had “suspended” its relationship with the company that runs the rankings, Shook Research, a move that could potentially alienate advisors who rely on the Forbes ranking to market their status as top advisors.

Meanwhile, RJ Shook, who sold his eponymously named research firm to private equity manager PPC Enterprises last year, today said in statement that the multi-million dollar payment to Lane was in “recognition of the services and guidance he had provided to me and the success I achieved as a result.”

Shook Research, in an attempt to shore up its reputation in the financial advisor business community, this morning said it is “taking additional steps to further strengthen and demonstrate the independence of its rankings.” Shook also plans to change its branding in the near future.

“Going forward, Shook Research remains focused on providing advisors, their clients, and the wealth management profession with a trusted measure of excellence,” according to the statement.

Ranks and lists of top financial advisors are more prominent than ever as cash-hungry business publications look to generate marketing revenue. With revenue from print ads practically disappearing, Forbes, like many other newspapers and magazines, has turned to rankings, events and awards in order to generate revenue.

It’s not clear whether other large firms will follow the lead of Morgan Stanley. Industry publication AdvisorHub last week first reported Morgan Stanley dropping – at least for now – the Forbes list.

The New York Times earlier in August reported that Randall Lane, Forbes former chief content officer, was paid $6 million by RJ Shook, whose company, Shook Research, teamed up with Forbes since 2016 to publish rankings of financial advisors. Lane did not tell Forbes about the payment.

“I made a mistake, and I take responsibility for it,” Lane, 58, said in a statement to The Times earlier this month. “I should have disclosed the gift, and failing to was a serious error in judgment. I deeply regret that, and I lost the job and team I love because of it. None of this changes how I feel about Forbes and the amazing people there.”

Morgan Stanley told its 15,000 or so financial advisors last week that, after consideration, the firm was suspending participation in Forbes and Shook advisor rankings and conferences.

“We recognize that our advisors and teams currently ranked by Forbes have incorporated these conferences and materials into practice marketing and professional development efforts,” according to a memo by Barry Krouk, Chief Operating Officer, Field Management.

“In place of Forbes-related marketing, advisors and teams will have an opportunity to leverage alternative digital marketing resources,” according to the memo.

"We continue to work with outside counsel to engage in an independent and careful review of the facts including our wealth advisors lists to ensure that they fully comply with our governance policies and journalistic standards," a Forbes spokesperson wrote in an email. "While that work continues, we have not found evidence that the integrity of the rankings or editorial integrity was ever compromised."