UBS loses two advisor teams with $4.3B to Wells Fargo, RBC

Stefan Wermuth/Bloomberg

Swiss bank giant UBS is aiming high with plans to expand in the U.S. and grab more of the ultra high net worth market, but big competitors are blunting its momentum. 

The bank lost two large advisory teams in as many weeks, with a combined total of $4.3 billion of assets managed by nine brokers defecting to wirehouse Wells Fargo and to regional firm RBC. UBS declined to comment on the moves. 

In the first and more recent move, Margate Wealth Management Group of Short Hills, New Jersey, joined Wells Fargo on Nov. 4, bringing $2.6 billion in client assets under management. The team consists of advisors Andrew Perry and Todd Perry, who are brothers, and Heather Molin and Matthew Giugliano, as well as client performance analysts Mark Franciotti and Ashley Lefler. The group will have a second office in New York City. 

"I've known them for many years and look forward to working with them," said Barry Sommers, the CEO of Wells Fargo Wealth & Investment Management, in a statement. "Our expansive range of high net worth services and resources will help their clients and grow their business." 

The jumps come as Wells Fargo ramps up its advisor recruitment with an early announcement about sweetened compensation grids and RBC's wealth management unit grew profits 4% year-over-year and increased its advisor headcount, a bright spot in its generally gray earnings last quarter. 

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At UBS, the six-person Margate group was half of a powerhouse ultra high net worth team, ViewPoint Partners, that split in the move and is now down to seven employees. The current leader of ViewPoint, Sharon Sager, is a Barron's Hall of Fame advisor. According to a brochure on the UBS website from 2019, ViewPoint specialized in serving Forbes 400 families, entrepreneurs, family offices, wealthy women, hedge funds and other global institutional clients. 

Margate advisor Andrew Perry said in a statement that the move would "enable us to service the demanding needs of our ultra high net worth clients with a broader, more robust investment and commercial lending platform." 

"We have lots of clients across Wells Fargo Advisors who are also business owners," a Wells Fargo spokesperson said in an email. The Margate advisors would be able to connect them to the wirehouse's commercial bank for business banking and lending, the spokesperson added. 

Margate's newly launched advisor site says it also helps clients with "investing, retirement, estate planning and wealth preservation."

Todd and Andrew Perry each have pending customer disputes on their FINRA BrokerCheck records that revolve around making unsuitable investments for clients related to options overlay strategies. Additionally, three of the four Margate advisors, including each of the Perry brothers and Molin, have settled customer claims in the past seven years. "I disagree with and deny all allegations. I am comfortable that this customer was treated fairly, the account was handled properly, and, as always, I acted in the best interests of the client at all times," Andrew Perry said in his BrokerCheck profile, regarding a 2019 settlement for $300,000.

Asked if Wells Fargo was concerned about the incoming team's BrokerCheck records, the company spokesperson said in an email, "We are thrilled that this team is joining Wells Fargo." 

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In the second move, UBS last week lost the Indianapolis-based Promus Wealth Management Group, with $1.7 billion of assets under management, to RBC Wealth Management. Promus is a 16-person team including five advisors, focused on corporate retirement plan consulting, as well as high net worth individuals and families and foundations. 

David W. Bartz, a leader of Promus, said in a press release that RBC's "products, tools and integrated technology platform will enable us to best serve our clients and grow our practice." 

Promus Wealth Management Group

"It is also a great fit for our team culturally, with a well-respected local leadership team that places a strong emphasis on creating an excellent experience for our clients."