Andrew Welsch

The changes are the first under David Kowach, who became president of the wirehouse's traditional employee broker-dealer late last year.

An internal memo informs the firm's 15,000 advisers about the move, which builds on management changes made earlier this year.

Though some say the rule's future is in doubt, the firm is going ahead with sweeping changes it hopes will make its advisers more competitive.

The regulator plans to ramp up scrutiny of bad brokers and electronic communications, among other new measures.

The planner, joining from Robertson Stephens, also has worked for UBS and Merrill Lynch.

The former broker, who pleaded guilty to securities fraud last month, allegedly promised clients returns of up to 15% and used proceeds for personal expenses.

The new recruit, who started with the wirehouse's predecessor firm Smith Barney, has been in the industry since the late 1990s.

The new recruits previously generated $1.5 million in annual revenue at UBS, according to the regional brokerage firm.

The adviser had been employed with the firm for seven years prior to her dismissal, and had no disclosures on her BrokerCheck record.

The regulator said "significant deficiencies" affected hundreds of millions of records.

Both recruits have more than two decades of experience.

The new hires opened two offices for the regional BD.

The fast-growing firm has recruited 25 advisers this year, and is affiliated with Raymond James.

"I lose years of my life. They can settle, write a check and move on," says an adviser whose book of business dropped by $40 million after he alleges he was wrongfully terminated.

The wirehouse will leave its core pay grid untouched for 2017.

The new recruits joined from Merrill Lynch and Morgan Stanley.

The team accused the firm of preventing them from properly conducting business with their clients, a charge that a FINRA arbitration panel rejected.

The regional firm's new hires generated $2.2 million in annual revenues, according to RBC.

The new recruit generated $1 million in annual revenue.

Exclusive: The regional firm picked up two groups of recruits from Wells Fargo and Merrill Lynch.