RBC WM unit extends run on rivals' human resources

FWR Staff

19 November 2008

Minneapolis-based firm lifts out a billion-dollar team from UBS in Arizona. As part of a campaign to pluck top producers from troubled rivals, Minneapolis-based RBC Wealth Management, known as RBC Dain Rauscher until about eight months ago, has lifted high-profile team out of UBS.

Phoenix-based Flader Consulting Group, formerly employed by UBS' U.S. retail brokerage, joined RBC Wealth Management late last month. The team, consisting of the Flader brothers -- Allan, Michael and Brian -- Chris Young and Joanne Lane, reports to Tim Rannow, manager of RBC Wealth Management's Phoenix office.

Quickening

The Flader Consulting Group managed more than $1 billion in clients assets when it was with UBS.

Last week another big team UBS team, Minneapolis-based Marks Group Wealth Management, left to establish an independent advisory.

Zurich-based UBS, which has had to writedown about $50 billion in mortgage-backed securities this year, has been hemorrhaging private-client assets throughout 2008. Though it has secured the Swiss government's help to get "toxic" assets off its books, and its top executives yesterday elected to forego bonuses for 2008, last week Raoul Weil, head of its global wealth-management business, was indicted by a U.S. grand jury on the charge of conspiring to defraud the U.S. government in a far-reaching tax-avoidance scheme.

UBS' ADR was nearly 80% off its 52-week high in midday trading today.

Also joining RBC Wealth Management's Phoenix office is former Merrill Lynch broker Jerry Nichols, who was responsible for more than $160 million in client assets as his old shop.

Merrill, whose share price was 82% off its 52-week high today, is slated to become a part of Bank of America early in 2009.

RBC Wealth Management, a subsidiary of Toronto-based Royal Bank of Canada, has said it plans to take advantage of recent turmoil in the financial-service industry to pluck brokers away from dented rivals. It has brought in over 150 advisors so far this year up from 90 or so by this time in 2007. Its stock was 36% off its 12-month high in intraday trading today. -FWR