UBS Recruits Bank of America Private Bankers with $2-Bln in California
UBS Wealth Management USA continues to lean on large private banking teams to expand its brokerage force and has hired a $2 billion-asset Bank of America Private Bank team in Newport Beach, California, according to an announcement.
Nieto had been a private client advisor at Bank of America Private Bank (formerly known as U.S. Trust) for 25 years, according to the announcement. He has been registered as a broker since 2009, according to his BrokerCheck record.
Grand joined Bank of America in 2015 after three years at RA Capital Advisors, according to his Brokercheck record.
Neither could immediately be reached for comment at their branch. They report to Justin Frame, Los Angeles & Orange County market head at UBS Wealth Management USA.
The hiring reflects UBS’ growing appetite for salaried private bankers, which was also underscored last week when the firm nabbed a J.P. Morgan Private Bank team that was said to be generating $75 million in revenue. The team will join UBS in Dallas after a garden leave.
Private bankers had historically been a challenging demographic for traditional brokerage units to recruit because they and their clients are closely tied into their parent banks, recruiters have said. Bankers, who are paid a combination of salary and bonus in contrast to commission-based payouts at traditional brokerage firms, also often have garden-leave, and other non-solicitation obligations that reduce client transfer rates.
As a result, traditional brokerages often heavily discount the portion of assets that are likely to move when calculating recruiting offers to bankers. UBS, for example, anticipated around half of the Dallas team’s revenue would move when they officially join in coming months after garden leave terms of 60 to 90 days, sources said.
A spokesperson for UBS did not immediately return a request for comment on whether the Bank of America team had served out garden leaves prior to joining UBS. Their registrations with Bank of America’s Merrill Lynch broker-dealer ended on April 30, according to Brokercheck.
A Bank of America spokesperson did not return a request for comment.
Bank of America had 1,759 “primary sales professionals” at the end of 2020, mostly flat with 1,766 year-over-year. It no longer breaks out advisor headcount numbers by business line at its Global Wealth division, which consists primarily of its Merrill Lynch Wealth Management traditional brokerage force.
UBS has around 6,300 advisors in its Americas business that also includes a few hundred in Latin America and Canada. The division’s headcount stabilized in the first three months of the year thanks in part to a revival of its hiring efforts over the past year.