ON THE MOVE-Raymond James hires veteran Morgan Stanley broker

Mon Nov 12, 2012 1:41pm EST

Nov 12 (Reuters) - Raymond James Financial Inc has expanded its adviser force in Arizona with a veteran hire from Morgan Stanley Wealth Management.

Karl Rothermund, who has been an adviser for more than three decades, moved to Raymond James in September from Morgan Stanley's U.S. brokerage, where he managed $80 million in client assets and generated roughly $1 million in annual revenue.

Rothermund said in an interview that he made the move in part because of changes in compensation at his old firm, which affected some of his smaller client accounts. He said he was also drawn to the culture of a smaller regional firm, which contrasted with that of the larger bank-owned brokerages he worked at in the past.

"At Raymond James the client comes first," Rothermund said, noting that he didn't mind giving up the higher transition packages offered to him by other rival firms. "On balance, everything else outweighed the loss of that initial compensation."

Rothermund joined Raymond James as a senior vice president of investments, based out of the company's Scottsdale office. He had been with Morgan Stanley Wealth Management's predecessor firms for about two decades, first with Citigroup and later with Morgan Stanley.

Morgan Stanley Wealth Management, formed out of the merger of Citi's Smith Barney and Morgan Stanley's wealth business in 2009, is majority owned by Morgan Stanley.

Morgan Stanley declined to comment on the departure.

Rothermund, who focuses on wealth preservation for high-net-worth clients, had also previously been an adviser with Merrill Lynch earlier in his career, according to regulatory filings.

Rothermund was joined by his son, Ryan Rothermund, an associate vice president of investments, and Susan Dover, a registered service associate.

The advisers joined Raymond James & Associates, the traditional employee broker-dealer division of the St. Petersburg, Florida-based company.

Raymond James also has an independent broker-dealer division in the United States and small brokerage units in Canada and Britain.

With its broker-dealer subsidiaries, Raymond James has more than 6,300 advisers managing about $390 billion in client assets. The company's acquisition of Memphis-based brokerage Morgan Keegan in April added the firm's roughly 1,000 advisers.