News, Vision & Voice for the Advisory Community


Brothers reunite as a $3.8 billion ex-Graystone team forms its own RIA

Morgan Stanley Smith Barney's elite consulting unit pushed out the older brother based on alleged wrongdoing and his younger brother spearheaded a breakaway to rejoin him

Author By Lisa Shidler July 11, 2012 at 3:27 PM
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Michael Hull: There's no question we were going to be together.

Jeff Spears

Jeff Spears

July 11, 2012 — 4:45 PM

Wirehouses are using the FINRA outside business requirement to terminate brokers who are looking to set up an RIA before they resign.

This reality should be a boon for the services offered by Brian Hamburger and breakaway platforms that provide an established corporate RIA for their breakaway advisors.

Stephen Winks

Stephen Winks

July 17, 2012 — 1:31 PM

Regulation goes both ways as the industry can abuse the broker as well as the broker can abuse the consumer. FINRA as regulator has a well documented history of turning a blind eye to industry abuses such as condoning that brokers are not responsible or accountable for their recommendations which has resulted in the loss of trust and confidence of the investing public.

It is about time FINRA stood up for the broker’s and consumer’s best interest rather than simply protecting the industry’s interests. If brokerage firms can terminate brokers, especially $3.8 billion brokers at will, simply because they seek to act in the best interest of the investing public because they are unable to do so in a brokerage format, it is an abuse of power counter to the best interest of the investing public. This clearily demonstrates when it comes down to doing the right thing—the interests of the industry take pecedence over the well being of the investing public.


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Mentioned in this article:

Sr. Consultant
Consulting Firm
Top Executive: Stephen Winks

Envestnet Inc
Top Executive: Jud Bergman

Dynasty Financial Partners LLC
Specialized Breakaway Service, Mergers and Acquisition Firm, RIA Set-up Firm
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