Another JPM Brokerage Team in Los Angeles Jumps, This Time to Merrill
A pair of advisors who had been with JP Morgan Securities’ Century City, Calif., brokerage office for five years and managed some $350 million of client assets, jumped on Monday to Merrill Lynch’s nearby Manhattan Beach office.
John G. Uriostegui and his partner Rod Nakamoto, together with two associates, produced about $3 million in the past 12 months, said a person familiar with their move. Reached late Monday night at the Merrill branch, Nakamoto declined to comment.
The migration indicates that big brokerage firms continue to selectively hire ahead of the April 10, 2017, implementation of the DOL fiduciary rule, despite the rule’s strictures on recruiting packages,
To comply with the DOL’s proscription on bonuses tied to revenue targets, Merrill is limiting its back-end targets to asset generation, according to three recruiters. Like most other firms, it also is excluding retirement assets from its upfront and back-end bonus calculations, reflecting the rule’s application to retirement accounts only.
Merrill’s upfront bonus for select brokers ranges from 150-170% of a team’s 12-month production. Its back-end is governed by annual asset-under-management targets expected to progress from 75% of the team’s former total at the end of the first year to 155% by the end of their fifth year, according to the recruiters, who spoke on condition of anonymity.
For JPMorgan, the move continues an exodus of veteran brokers to large rivals. In September, the bank-owned broker’s former southern California regional director, Garrett Bland, left the Century City office for Morgan Stanley. He followed two other California teams who also allied with Morgan Stanley in June and February as well as that of a Boston-based broker who allied with Jefferies & Co. in August.
JP Morgan Securities recently reorganized its wealth management operations in an attempt to stabilize the company’s private bank and brokerage units, naming Bear Stearns veteran Barry Sommers as CEO and as cohead of its wealth and investment management division. JP Morgan bought Bear Stearns at the start of the financial crisis at the request of Bush administration officials looking to avoid another Lehman Brothers-like collapse of Bear.
JP Morgan spokesman Darin Oduyoye declined to comment on the latest departures, which occurred at an office overseen by regional director Frank Eppinger.
Merrill spokeswoman Susan Atran confirmed the arrival of theUgroup, but declined further comment.