Edelman exec signs on with Cary Street as it stretches its 401(k) and corporate reach
After a decade at Edelman Financial Services LLC, R.J. Reibel has moved to Richmond, Va.-based Cary Street Partners Investment Advisory LLC as vice president of its growing corporate benefits and retirement unit.
Reibel previously served as manager of retirement plans at Fairfax, Va.-based Edelman starting in 2008. Before that, he was regional wholesaler at Financeware Inc. (formerly Wealthcare Capital Management Inc., which -- after Reibel left -- was embroiled in a lawsuit with UBS and others over patent infringement).
Reibel began his career as a financial analyst at Marsh USA and was a combat engineer in the Virginia Army National Guard from 1996 to 2002.
Luxon Financial Co. is the parent firm of Cary Street Partners, and also owns Luxon Global and Luxon Insurance Services. Cary Street has $1.8 billion of AUM. Total overseen assets at Luxon Financial clock in at $2.5 billion.
With the addition of Luxon Insurance Services in the past year, the firm has been expanding its services, which now include 401(k) and individual wealth management and a range of corporate benefits and other insurance-related products.
Reibel will be based Cary Street's Glen Allen, Va. office, working with the firm’s existing team led by Celia Rafalko.
“Luxon Financial, and the team at Cary Street Partners, provides a platform for independent thinking advisors, such as myself, and just as importantly provide the tools my clients require to compete and to win," says Reibel, in a statement. "It’s a liberating feeling to be able to join a team that understands the challenges we face, and which provides vision to help us better service our clients."
Earlier this month, Cary Street hired Bryan Lawson as a wealth manager. See: Cary Street hires ex-CEO of regional bank wealth advisor in Virginia's Tri-Cities area.
Significant progress is being made simply by virtue of the SIFMA agreeing that brokers should be held to a fiduciary standard of care. This was not in the realm of possibility two years ago.
The two previously stated caveates of the SIFMA are (1)that trade execution would continue to be treated as a profit center which is a prohibited transaction under ERISA not in synch with fiduciary duty and (2) the implication that by clients simply having choice removes accountability for investment recommendations which would not trigger fiduciary liability. This would make descretion the trigger for accountability rather the trust vested in the advisor by the client. This later point is a question of the industry’s conventional product management organizational structure geared to sell investment products versus a process management organizational structure geared to addressing and managing investment and administrative value in the best interests of the consumer. This can be resolved by the support infrastructure (processes, technology, functional division of labor, statutory documentation, conflict management and advisory services support) necessary to make fiduciary standing safe and easy to achieve through an audit path and expert opinion letter to prove fiduciary standing. The former point of making trade execution a cost center is readly resolved but requires a different business model and culture. Both are far easier to resolve than the imbeded brokerage culture presently will allow.
The advice business is entirely different from the brokerage business and requires a series of difficult business decisions to be made for the brokerage industry to evolve in support of fiduciary standing. Until these difficult decisions are put on the table and resolved, the brokerage industry will only in principle support fiduciary standing because in fact they will be doing something different.