FSC Securities CEO Jerry Murphy has stepped down, giving way to a newly hired replacement, former Waddell & Reed president Derek Burke.
The shakeup at Atlanta-based FSC, which is effective immediately, was announced Wednesday by its parent company, Advisor Group, the nation’s second-largest network of independent broker-dealers. FSC is the third-largest IBD in Advisor Group’s stable, and the 23rd largest IBD overall.
The shuffle comes as the fiduciary rule and consolidation continue to buffet IBDs. Advisor Group Chairwoman Valerie Brown has said the private equity-backed firm has spent “untold numbers of hours and dollars” on compliance, and three of its four BDs took in lower revenue last year.
In February, Burke resigned from the 11th largest IBD, Waddell & Reed, after two-and-a-half years in the role under CEO Thomas Butch, according to news reports at the time. He will now report directly to Advisor Group CEO Jamie Price, overseeing FSC’s roughly 1,000 advisors and $37 billion in client assets.
“I’m excited and grateful for the opportunity to join FSC and Advisor Group during such an important and dynamic time in our industry,” Burke said in a statement.
His goals, he added, include building “a best-in-class wealth management platform” and upholding “our mission: to always have our advisors’ backs, and to be in their corner every step of the way.”
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Representatives of Burke’s former firm, Waddell & Reed, said Butch and other members of the firm's leadership team have absorbed his former duties as president.
Advisor Group executives credit Burke with revamping Waddell & Reed’s business by creating a new advisor workstation and enhancing the firm’s succession and growth strategies. In his new role, Burke will launch expansion efforts designed to tap into opportunities in the fiduciary era, according to Advisor Group.
Prior to Waddell & Reed, Burke served as a managing director at UBS’ U.S. Wealth Management unit. He was also previously COO for New York Life’s Investment Management Group and compliance chief for Prudential’s Private Asset Management division. He began his career as an SEC enforcement attorney.
Burke takes over the position of president as well as CEO from Murphy, who had led the firm since 2011. Murphy had also been an executive vice president with the BD since joining Advisor Group in 2005.
Murphy is leaving to serve as partner at The Legacy One Group, one of FSC’s largest offices of supervisory jurisdiction, according to Wednesday’s announcement. He’ll move on to Legacy One over the next several months, a spokesman says.
In a statement, Price praised Burke’s “deep leadership experience” and his “passion for championing advisors.” He also thanked Murphy for his service.
“He provided a steady hand and sound counsel to FSC during the tumultuous days of the financial crisis and throughout the ensuing market recovery period,” Price said.
Advisor Group, which Lightyear Capital and Canadian pension manager PSP Investments bought last year, earned more than $1.3 billion in revenue last year. The firm’s four BD’s — including fellow subsidiaries Royal Alliance Associates, SagePoint Financial and Woodbury Financial Services —have more than 5,500 advisors.