Morgan Stanley Smith Barney has recruited Ben Dembin and Francis Schiavetti, who previously oversaw $107 million in client assets and together generated $1.2 million in annual fees and commissions at Wells Fargo.
According to a report filed with the Financial Industry Regulatory Authority, Dembin and Schiavetti will work at the joint venture’s Boca Raton, Fla., operation
A MSSB spokeswoman confirmed that the team started last week.
Dembin spent five years and Schiavetti spent four years at Wells Fargo. Prior to this, Schiavetti spent two years at UBS.
Some industry observers feel that since wirehouses have been creating more alluring golden handcuffs through sweeter retention packages to keep advisors satisfied- it is not always seen as the best strategy.
“It's not a long-term solution to the constant movement,” says Alois Pirker, senior analyst at Aite Group in an interview last month with On Wall Street. “The retention packages mean a lot to keep advisors, but it buys the wirehouses time, not loyalty.”
As of recently, wirehouses began structuring incentives to really boost their position. “MSSB offers mortgages and loans for five to six years,” Pirker says. "But if they leave sooner, they're on the hook to pay it back [and] this is a way they stay tied to the company."
Adding further to MSSB expansion efforts, last week the firm recruited a million-dollar team from UBS Wealth Management Americas. Art Martin, his son, Wade Martin, and John Rizzo joined the brokerage’s Lawrenceville, N.J office, the team managed $350 million in client assets and generated up to $3.3 million in combined annual production.