Nov 15 (Reuters) - Former Merrill Lynch brokerage chief Lyle LaMothe, who retired from the firm last year and now runs his own consulting firm, has joined the senior advisory board of Chicago-based boutique investment firm David A. Noyes & Co.
For LaMothe, who vocalized his opposition to the big bank-owned brokerage model in an interview with Reuters earlier this year, said the decision to join the board of the regional adviser-owned David A. Noyes underscores that philosophy.
“We really see David A. Noyes as an antidote to those who feel their culture has been taken from them and want to remain in an employee model,” said the firm’s President Jim Guthrie in an interview on Thursday.
Guthrie, also a Merrill veteran who knew LaMothe during his time at the firm, referred to cultural shifts in the U.S. wealth management industry as a result of brokerages being bought by big global banks.
“We’re privately owned by our own employees, so we don’t have a layer of bureaucracy or management,” said Guthrie.
David A. Noyes, founded in 1908, has 76 financial advisers across its eight Midwest offices, many of who came from larger brokerages.
Adding LaMothe to the firm’s board is part of the firm’s broader growth strategy to expand its adviser base by leveraging his industry credibility, Guthrie said.
LaMothe was with Merrill for 24 years before leaving in May 2011. He rose through the ranks from an adviser to eventually become the head of U.S. wealth management - a role he took on just months before the firm was bought by Bank of America Corp in the midst of the financial crisis.
Bank of America declined to comment for the story.
“Those of us who have had the opportunity to work with him at Merrill very much bought into the client focus,” said Mark Damer, also a Merrill veteran and now national sales manager at David A. Noyes.
LaMothe, who could not immediately be reached for comment, also recently joined the advisory board of New York-based Snowden Capital Advisors LLC, an independent boutique brokerage firm founded by his former Merrill colleagues Rob Mooney and John Morris.
LaMothe maintains his position as senior partner at New York-based Left Hand Logic, LLC, a business consulting firm he founded in December to advise money managers, brokerages, technology vendors and other companies in the wealth management industry. (Reporting By Ashley Lau in New York; Editing by Bernard Orr)