$275M Morgan Stanley team goes indie with Raymond James
Morgan Stanley lost a team that oversaw $275 million in client assets to Raymond James, the company said.
The team comprises founder Sam Maxwell and director of client services Sherry Nelson. They launched their independent practice, Executive Wealth Group, with Raymond James' Investment Advisors Division, according to the firm. The team made the move last month, and is based in Kirkland, Washington.
Maxwell said they opted to partner with Raymond James because of its platform and technology, adding they analyzed the choices carefully.
The firm's Private Client Group saw pretax profits drop to $29 million from $83 million for the year-ago period.April 27
The settlement is the third major regulatory payment the BD has incurred in the past year. A branch manager associated with the Jay Peak case has also left the firm.April 17
The firm is preparing for the fiduciary rule and contesting a lawsuit alleging that Raymond James allowed a $350 million fraud to be perpetuated.January 26
"Choosing a custodian is among the most important decisions a principal can make in establishing an advisory business," Maxwell said in a statement.
Maxwell, a 25-year industry veteran, had been with Morgan Stanley since 2008, according to FINRA BrokerCheck records. He previously worked at RBC.
Nelson's 37-year career in financial services started at Smith Barney in 1980, according to Raymond James.
A spokeswoman for Morgan Stanley was not available for immediate comment.