California Broker Dismissed by Wells Takes $7.1-Bln Team to Ameriprise
Michael L. Abrams, a nationally ranked Silicon Valley-based broker dismissed by Wells Fargo Advisors earlier this month for falling short of “conduct expectations,” has found a new home at Ameriprise Financial.
Abrams, a registered representative for 29 years, had been with Wells since 1999 and worked in Palo Alto in its “wealth brokerage services” unit, which generally services bank branch customers. He could not immediately be reached for comment on his move.
Abrams negotiated his move quickly. His registration with Wells lapsed on September 3, according to BrokerCheck.
Wells Fargo Advisors discharged Abrams after determining he did not meet the firm’s conduct standards, according to a summary of the U5 firm appended to his Central Registration Depository record. It did not elaborate, other than to say that the conduct lapse was unrelated to the securities business.
Abrams’ relatively clean regulatory record aside from the U5 language—he has only one disclosure on BrokerCheck, a customer suitability complaint denied by Wells—combined with his large book likely made him attractive to several firms, said recruiters and lawyers speaking on condition of anonymity.
Abrams ranked #10 in Forbes’ most recent best-in-state wealth advisors poll in California and #234 nationally. Barron’s ranked him #54 in California and from 2011 to 2019 listed him as a “Top 1200” advisor nationally. He was managing $6.5 billion for 78 households with an average net worth of $40 million as of the end of last September, according to Barron’s.
His team’s client assets imply a multimillion-dollar production number that would place Abrams in Ameriprise’s top tier of brokers. The Minneapolis-based company’s advisors on average generate $638,000 annually, it said in its second-quarter earnings report.
Abrams is not the only big producer who landed quickly this summer after troubles at their former firms.
Steven H. Heng, who Wells dismissed from a wealth brokerage services branch in May for alleged issues involving his personal bank account, was hired in June by Robert W. Baird in Roseville, CA. Forbes ranks Heng #101 in California with $350 million in client assets.
Christopher R. Berry, dismissed from Merrill Lynch Wealth’s private wealth unit in June for letting an assistant complete some required training modules, is now an advisor with Boston Private Financial Holdings in San Francisco.
Ameriprise hired 75 brokers in the second quarter but reported a net decline of 57 in its force over the previous year. It had 9,894 advisors as of June 30, including 2,200 in its employee channel. The remainder work as independent contractors in its “franchise” channel.
Wells Fargo as of June 30 had 13,298 advisors in its private wealth, independent contractor and bank branch channels, a net loss of 501 from a year earlier.
Like I said yesterday….
You said it First!!
Do a follow up story in 6 and 12 months. This will prove to a disaster marriage for advisor and Ameriprise. He can’t move his book and they can’t service what he does move. What a horrific “recruiting” exercise.
To have that much in the way of assets, this team had to have at least one or two “whale” clients who are undoubtedly used to having access to a very broad palate of investment services. Ameriprise is not a bad firm, but it is not designed nor equipped to handle UNHW clients, it’s just not. It is still two or three steps above Edward Jones for firms serving in the mass affluent segment, but it does not offer private or investment banking, syndicate or private placements. Someone at Ameriprise deserves kudos for luring this team over there, but it would be surprising if Michael and Joseph are still there after a year or so once those whale clients realize what they’ve landed in.
It won’t be a problem if they went to the independent channel over there. The firm would not fight to retain their clients in that case.
Yesterday you implied he left for, which is different than: term’d for cause
As long as bottom fishers like AMP and Stifel exist who are willing to set up an office in a jail cell for an FA, then the industry will never really improve
Said the compliance officer
How hard is Wells going to pounce on this transition? I know Cali tends to have more lenient labor laws, but for that amount of assets you would think they’d throw the book at the guy
Given that they came out of the bank channel and not the wirehouse, some of those clients may have pretty sticky relationships with the bank and may be more difficult to move. Time will tell.
Why was this guy fired? Anyone have the details? This is scary (again) when a big producer with a clean record is let go after 30 years.
Terminations of employees can happen nowadays for things that in prior years would merit a slap on the wrist or a letter of reprimand. This case was unique, as I suppose they all are, but the only way to insulate oneself against this type of event is to be your own boss.
While we still don’t know what the cause is, I’m pretty sure it’s big. But more to the recruiters comment are you saying if I’m my own boss I can lie steal and cheat? Is that the benefit of independence? Do you use that close much? Yes mores and norms have evolved, you better too
At least I know what the cause was and I’m not talking out of my backside.
So you’re saying that this guy is going to regret separating his clients from the bank, not competing internally with roboadvisor, not being asked to do 10% more business to make the same amount of money as the year before, being treated like an accounting error rather than an asset of the company, or having to explain to clients that Elizabeth Warren is wrong about your employer being a criminal organization. Oh, but he won’t have access to investment bankers, aka overleveraged high-risk deals that are just another reason you haven’t received a pay raise in 10 years. The only regret he’s going to have is that he didn’t make a move to Ameriprise sooner!
I wouldn’t call Ameriprise a “bottom fisher”. An advisor focused firm, without the red tape.