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Discharged by Raymond James, top-ranked advisor lands at Stifel

Stifel’s latest recruiting haul brought in six advisors overseeing $642 million in total client assets, the firm says.

The new hires include four Raymond James advisors, three of whom were discharged from the firm.

Raymond James cut ties with Lynn Faust and her son Michael “due to concerns relating to the nature of advisor's UIT activity,” according to a note contained on the Fausts’ individual FINRA BrokerCheck records. The company listed an identical explanation on the BrokerCheck record of Robert Rubarth, who was discharged in October.

Sales of unit investment trusts have come under regulatory scrutiny by FINRA in recent years. Last year, the regulator penalized Morgan Stanley with $13 million in sanctions for supervisory failures regarding UIT sales.

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In the Fausts’ case, they were longtime Raymond James advisors in Charlotte, North Carolina, and oversaw $285 million in client assets. Lynn Faust joined the firm in 1988 while her son signed on in 1999, according to BrokerCheck records. She also was recently ranked as a top Forbes advisor for 2018 and her LinkedIn profile says she was the first female branch manager at Raymond James.

Michael Faust has no client complaints listed on his BrokerCheck record. Lynn Faust has two dating to the 1980s, and which resulted in arbitrations awards totaling $10,300, according to her BrokerCheck record.

Rubarth had no client complaints listed on his BrokerCheck record. An advisor of 25 years, he joined Raymond James from Ameriprise in 2012. He oversaw $54 million and is based in in Shelby Township, Michigan.

Spokespersons for Stifel and Raymond James declined to comment. Rubarth and the Fausts could not be reached for immediate comment.

Stifel said the mother-son team would work from Charlotte on a temporary basis until the opening of a new office in Greenville, South Carolina. That new branch will be the firm’s eighth in the state.

Stifel’s other hire from Raymond James is Fred Ross in Atlanta. Ross is a 28-year industry veteran who oversaw $64 million. He spent 12 years at Raymond James.

Stifel September hires, 2018

The firm also picked up advisor Peter Smith in Phoenix. He previously worked at Moors & Cabot where he managed $142 million, according to Stifel. He’s the third advisor to join the Phoenix office in the past two months.

Former Morgan Stanley advisor Tyler Lenda left the wirehouse to join Stifel’s branch in York, Pennsylvania. Lenda oversaw $97 million, according to her new employer.

Stifel has been on a recruiting tear this year, picking up a number of new recruits, many of whom made the move from wirehouses. That aggressive strategy pushed its advisor head count to 2,298 for the third quarter, a net increase of 31 from the prior quarter and 47 from the year-ago period. Stifel CEO Ronald Kruszewski hailed the results during a recent earnings call.

“It was our best quarterly recruiting total in roughly 10 years, excluding acquisitions,” he said.

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