Wells Fargo Advisors has successfully attracted two teams from UBS Wealth Management USA, collectively managing $625 million in assets. This strategic move highlights the ongoing trend of advisor migrations within the wealth management sector.
The larger of the two teams, now operating under the name Bergen County Wealth Management, is led by seasoned advisors Stephen R. Laddy and John K. Serocke, who transitioned to Wells Fargo on December 10. This team previously managed $354 million in client assets and generated an annual revenue of $3.65 million. Laddy and Serocke's departure from UBS was part of a broader trend, as they split from a larger group known as Axis Wealth Partners. Their new team includes advisors Ernie Kloock, Melissa Lovell, DeAnn Cavagnaro, and Bruce Orenstein. The Axis Wealth Partners team had ranked #27 in New Jersey last year, boasting $875 million in combined assets, according to a Forbes ranking.
The recent changes at UBS, including the elimination of a compensation perk that allowed team members to combine production for higher payouts, have contributed to a climate of uncertainty, prompting some advisors to seek opportunities elsewhere.
In a separate but related development, veteran advisor Thomas Bishop, along with his son Kevin and a client associate, has also joined Wells Fargo. This team managed $270 million in client assets and produced $1.7 million in annual revenue while at UBS, where they were known as BDC Wealth Management. Thomas Bishop brings over three decades of experience to his new role, having previously worked at Merrill Lynch and Morgan Stanley before joining UBS in 2007. His son, Kevin, is a relatively new entrant to the industry, having started his career just two years ago.
The recent departures from UBS reflect broader challenges the firm is facing in retaining talent. The elimination of the production combination perk, which was unique among large wirehouses, has raised concerns among veteran producers. While UBS has made these changes in anticipation of 2025, the immediate impact on advisor morale and retention remains to be seen. Recruiters suggest that the decision to move firms typically involves a lengthy preparation process, indicating that these changes may not have been the sole catalyst for the recent exits.
UBS's headcount in the Americas stands at approximately 6,000, encompassing advisors across the U.S., Canada, and Latin America. The firm has been grappling with a high turnover rate, particularly among its wealth management teams. The recent migration of advisors to Wells Fargo underscores the competitive landscape of the wealth management industry, where firms are continually vying for top talent to enhance their service offerings and client relationships.
Wells Fargo's aggressive recruitment strategy is part of a broader effort to strengthen its position in the wealth management sector. The firm currently boasts around 12,000 brokers, including those in its private client group and bank channels. The recent influx of experienced advisors is expected to bolster Wells Fargo's capabilities in managing client assets and enhancing service delivery. This strategic positioning comes at a time when the wealth management industry is experiencing significant shifts, driven by changing client expectations and evolving market dynamics.
As Wells Fargo continues to expand its advisor base, the firm is also in the process of seeking a replacement for its head of recruiting, Brendan Krebs, who recently left for a role at PNC Bank's mass affluent wealth channel. The ongoing changes within Wells Fargo and its competitors highlight the dynamic nature of the wealth management landscape, where firms must adapt to retain talent and meet the evolving needs of their clients.