Advisor Group shakes up its recruiting with hiring of ex-RBC executive

In an abrupt change, one of the largest independent wealth managers appointed the top recruiting executive from an employee channel firm to lead its own financial advisor outreach.

Kristen Kimmell will join Advisor Group as the independent broker-dealer network’s top advisor recruiter, replacing Gregg Johnson after only a little more than a year in the role as the wealth manager’s executive vice president of recruiting and revenue acquisition. Upon occupying the new position next month, Kimmell’s official title will be executive vice president of business development for the wealth manager with more than 10,000 registered representatives.

Advisor Group

Kimmell is leaving RBC Wealth Management after more than two decades with the rapidly expanding employee channel firm, most recently as head of advisor recruiting and field marketing. Asked in an interview about her approach to a role encompassing both existing and prospective reps as well as relations with third-party recruiters, she said she’s “passionate about listening to advisors” when it comes to the firm’s culture, platform and technology.

“It's just a really exciting opportunity,” Kimmell said. “I was really impressed with the leadership team and hearing their energy and their passion and the direction that we’re going.”

As her replacement at her former firm, RBC said last month that it had promoted digital recruiting executive Amanda Dolan to be the firm’s head of advisor recruiting. Representatives for the firm issued a statement about Kimmell’s departure.

“While we don’t provide information on employees who are no longer with RBC Wealth Management, I can tell you that after a 25-year career here, Kristen said ‘yes’ to a unique opportunity,” spokeswoman Nicole Garrison says. “She remains a friend, and we wish her well on her next adventure.”

The outgoing current top recruiter at her new firm is leaving after 15 years with subsidiary Securities America, which private equity-backed Advisor Group purchased last year as part of a $1.3-billion acquisition of the rival Ladenburg Thalmann network. Johnson’s plans aren’t immediately clear. Neither FINRA BrokerCheck nor his profile on LinkedIn, where he didn’t respond to messages seeking an interview, contain any information about a new role.

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While Moody’s Investors Services has cited better-than-expected advisor retention after the Ladenburg deal and Advisor Group said in June that it had reeled in $1 billion in net new assets to its main advisory platform in a single month for the first time ever, the network has lost some major teams and enterprises to rivals. Five of them with at least $800 million each in client assets have left the wealth manager in the past two years, according to Financial Planning’s tracking of company recruiting moves.

Kimmell’s hiring reflects a broadening of the top recruiter role and a goal of Advisor Group to attract reps across all affiliations using new tech, according to President of Advice and Wealth Management Greg Cornick, who said in an interview that Johnson had many accomplishments with the firm and wished him well. Cornick came to Advisor Group from LPL Financial last year just as Johnson received the network-wide position in the wake of the acquisition.

After the transition to a new top recruiter, Kimmell will report directly to Cornick while collaborating with Advisor Group Chief Marketing Officer Susan Theder and Executive Vice President of Advisor Engagement Erinn Ford. Advisor Group has “evolved the role” in several ways, including “how to use technology in the recruiting process,” Cornick said.

“She's done a lot of this at RBC,” he said. “We're really excited about her expertise and coming over to help us.”

Kimmell will take over a challenging job at the Reverence Capital Partners-backed firm spanning six different BDs and nine RIAs and carrying significant competitive and debt-related pressures.

The Phoenix-based wealth manager’s parent, Advisor Group Holdings, has a “B3” corporate family rating due to “elevated debt leverage and weakened profitability, but also its strong franchise as one of the largest independent broker-dealers in the US with a strong financial advisor base,” Moody’s Senior Analyst Fadi Abdel Massih said in a note after a periodic review that came out the same day as the announcement of Kimmell’s appointment. Advisor Group successfully navigated the impact of the coronavirus on its business, Massih says.

“In reacting to the lower interest rate environment and higher market volatility, Advisor Group's seasoned management team swiftly lowered expenses and worked at identifying and realizing additional synergies from its acquisition of Ladenburg Thalmann,” he wrote. “The firm was also able to exceed its advisor retention targets, an important driver of client asset levels. The rebound in the level of financial markets has aided in lifting Advisor Group's client asset levels, a key driver for the firm's advisory revenue.”