Janney Montgomery Scott has a new products chief for wealth management, replacing the former head who stepped down to return to the world of financial planning.

Kevin Reed, previously managing director of taxable fixed income at the firm, replaced David Penn earlier this month, and will report directly to CEO Tim Scheve. Reed also joined Janney's executive committee.

In his new role, Reed will oversee Janney's products and solutions for the firm's 725 advisors.   

"The beauty of this is that I inherited a very strong platform from David," says Reed.

Penn, a 30-year veteran of the industry, had overseen products since May 2009. He joined Janney after having served as a managing director at Legg Mason. He made the move following Scheve, who also had left the firm to join Janney as CEO in 2007. The Philadelphia-based firm currently has $67.4 billion in assets under management.

Penn says that during his tenure, Janney upgraded its products offering, expertise and technology, and helped place the firm in a better position to compete with wirehouse and regional rivals. Today, Janney's advisors conduct more fee-based business and do more financial planning, he says. "I think we were a little bit behind the industry when I joined, and now I think we are close to where we should be in those businesses," Penn says.

Consultant Tony Sirianni, who also worked with Penn at Legg Mason and CitiGroup, which acquired its private client group in a 2005 deal, says Penn was well regarded for his expertise. Sirianni, now managing partner of Sirianni Strategy Group, adds that "anybody who is going to manage money with him is going to be very lucky."

Reed, who turns 42 next week, says he intends to build on Penn's accomplishments.

"We will continue to invest heavily in the areas that we believe are important to clients; wealth accumulation, estate planning and retirement income," Reed says. "These are the things our advisors are getting questions about."

Reed joined Janney in 2007 as head of the firm's municipal markets group, having previously served as municipal investment portfolio manager at Radian, and as a head of fixed income trader at LPL Financial. Reed became managing director of taxable fixed income markets at Janney in 2009.

Penn is now a financial advisor with the Nehrbas Group, a Janney advisor team in Bryn Mawr, Pa. Penn says he has known the team's leader, Andrew Nehrbas, since their days at Legg Mason in the 1980s.

Penn had advised clients earlier in his career.  He says he decided to return to it, in part because of his age. Penn turned 55 in December.

"When you hit 60, you're an elder statesman in corporate America in many ways," he says. "More than anything, it was about extending my careers."

He adds, "Clearly over the years, I've developed a skillset. I've been helping FAs advise their clients and developed the platforms they use."

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