Nov 12 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
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
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
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.