UBS Team with Nearly $3-Mln in Production Opens RIA in Denver
A high-producing UBS Wealth Management USA team in Denver, Colorado, left on Friday to hang out their shingle as an independent registered investment advisor firm.
James Michael Boon, who along with his son Tyler had been generating at least $2.75 million in annual revenue from $360 million in assets, have founded Jupiter Wealth Management, according to two sources familiar with their practice. James’ wife, Ann, who was an associate on the team at UBS, is also a partner in Jupiter, one of the sources familiar with their new firm said.
Neither James, a 26-year industry veteran, nor Tyler, who has nine years of experience, returned calls for comment left at their new Jupiter office.
The Boons had planned to leave in January of this year but opted to delay their plans after UBS in December withdrew from the Protocol for Broker Recruiting, the source familiar with the new firm said. The Protocol allowed brokers to take client information and contact their former clients when switching firms, and the withdrawal by UBS (and Morgan Stanley in November) initially sparked a flurry of lawsuits. The two ultimately felt comfortable after hiring a lawyer to ensure their move was “clean cut” and seeing other teams move without being sued, the source said.
UBS’s advisor force in the Americas (including a small group in Latin America) has been declining since it two years ago slashed its recruiting budgets to focus on retention of its senior producers. As of June 30, its headcount was 6,937, less than half the size of its competitors, including Morgan Stanley Wealth Management, Merrill Lynch and Wells Fargo Advisors. Last month, it began encouraging its managers to polish their recruiting pitch to prospects.
James Boon, who started at CIBC world markets in 1992 but spent most of his career at wirehouses, earned his own wealth running a commodity chemical business prior to his work in the brokerage industry, according to his former UBS biography. He also worked as a pension manager for a large industrial processing company, an experience he claimed helped him now in managing his own equity portfolios for clients.
“I left the world of business not only with this valuable experience but also with my own assets to manage,” he writes in his biography.
James worked at Prudential Securities, Wachovia and Morgan Stanley before joining UBS in 2008, according to BrokerCheck. Tyler started as a client associate at Schwab in 2008 and joined his father at UBS in 2010, according to his LinkedIn profile.
Jupiter custodies with Fidelity Investments and the group also received help setting up their new firm from tru Independence, a Portland-based company that provides back office and logistical help to break away brokers, according to the source. Craig Stuvland, founder of tru Independence, did not return a call for comment.
Separately, a 32-year industry veteran in Beverly Hills left UBS at the end of August but opted to stay in the wirehouse channel.
Deborah Key, who sources described as a well-regarded broker locally and who had been with UBS and its PaineWebber predecessor for over 16 years, joined Wells Fargo Advisors’ private client group on August 31, according to her BrokerCheck record.
Key had been generating around $730,000 in production, according to a source familiar with her practice.
She did not return a message left at her new Wells office seeking comment about the move. A spokeswoman for Wells Fargo confirmed the move.
Key started her brokerage career at Baraban Securities in 1985, and jumped among a handful of firms before joining Merrill Lynch in 1989, according to BrokerCheck. She stayed there for almost 12 years before moving to PaineWebber in 2001.