Corporate & Securities Law

SNSFE Attorneys Assisting Advisers Transition As Smith Barney Loses Advisers And Assets Pending Morgan Stanley Merger

By James Eccleston

Smith Barney bleeds as it prepares for merger with Morgan Stanley according to InvestmentNews magazine.  Smith Barney is losing brokers and advisers by the score and assets by the billions as it prepares for its new role as the junior partner to former rival Morgan Stanley in their impending joint venture.

Last year was disastrous for the New York-based firm and this year appears to be starting off little better, according to InvestmentNews.

In 2008, parent Citigroup lost 11% of its sales force - primarily Smith Barney reps and advisers. In the fourth quarter alone, Citigroup Wealth Management, of which Smith Barney is the largest part, lost 970 reps and advisers.

That dropped the firm's head count to 13,765 reps and advisers as of December 31, 2008.  Meanwhile, net-client-asset flows dropped steeply, with the firm losing an astounding $17 billion in client assets during the fourth quarter alone.

According to news reports and market sources, the firm last month alone lost three dozen reps and advisers with close to $2.4 billion in assets under management.  These included:

• Fifteen advisers in the Baltimore area who went to Robert Baird.  The brokers control slightly more than $1 billion in assets.
• Seven reps who departed to open an office in Greensboro, NC for Davenport & Co.  Those advisers made up the lion's share of an office with $760 million in assets.
• Two Smith Barney teams of 12 reps and advisers with $620 million in assets under management were hired by UBS, according to a news report.

SNSFE helps reps transition from firm-to-firm.  Those with questions about transitioning should contact attorneys at SNSFE.

Source: InvestmentNews

Full post as published by FinancialCounsel on March 10, 2009 (boomark / email).