© 2019 SourceMedia. All rights reserved.

Wells Fargo loses $240M advisor to J.P. Morgan Securities

J.P. Morgan Securities hired an advisor managing $240 million in client assets away from Wells Fargo, which is struggling with advisor retention.

Jason Holland joined the boutique wealth manager in Dallas, making him the latest in a series of new recruits, a J.P. Morgan spokeswoman said. In a statement, Holland cited the firm’s resources and culture as a reason for making the move. “J.P. Morgan is a global financial powerhouse, yet feels like a boutique firm,” he said.

Dynasty, Raymond James and Stifel are among the biggest beneficiaries of recent advisor moves.
September 21

Holland, who caters to wealthy clients, is a 19-year industry veteran who had worked at Wells Fargo since 2005, according to FINRA BrokerCheck records.

J.P. Morgan Securities has picked up a number of advisors, mostly from its larger wirehouse competitors. Last month, the bank landed two big hires: a former Merrill Lynch team in Palm Beach, Florida, that managed about $633 million in client assets, and two Houston-based advisors from AllianceBernstein who oversaw about $900 million.

Signage stands on display outside the JPMorgan & Chase Tower in downtown Chicago, Illinois, U.S., on Saturday, Oct. 7, 2017.  AKA J.P. Morgan.
Signage stands on display outside the JPMorgan & Chase Tower in downtown Chicago, Illinois, U.S., on Saturday, Oct. 7, 2017. JPMorgan Chase & Co. is scheduled to release earning figures on October 12. Photographer: Christopher Dilts/Bloomberg

Wells Fargo, meanwhile, has suffered from advisor attrition since a nationwide phony account scandal that potentially impacted more than three million customers came to light in 2016. The bank has since paid more than $1 billion in fines and is under heightened regulatory scrutiny. In February, the Federal Reserve took the unprecedented step of capping Wells’ growth beyond its then-$1.95 trillion asset level.

Brokers leaving the wirehouse have pointed to the negative headlines and what they say is a burdensome bureaucracy. Wells Fargo had 860 fewer advisors for the second quarter of this year than it had at the end of the third quarter of 2016, according to the company’s earnings reports.

A company spokeswoman declined to comment on Holland’s departure.

For reprint and licensing requests for this article, click here.