Barron\'s 03.16.2020

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March 16, 2020 BARRON’S S3


AMERICA’S TOP 1200 FINANCIAL ADVISORS 2020


Financial advisors are scrambling


to react to coronavirus headlines—


reassuring clients, reviewing alloca-


tions, and rethinking how their teams


work together. As that story develops,


however, they are preparing for an-


other that’s nearing its peak: Regula-


tion Best Interest, or Reg BI, which


takes effect in June.


The legislation, enacted by the Secu-


rities and Exchange Commission, bars


broker-dealer advisors from placing


their own interests, or their employers’,


above those of their clients. Previously,


only Registered Investment Advisors,


or RIAs, were held to a similar stan-


dard of care; those working at Wall


Street firms adhered to a looser stan-


dard that required them to make “suit-


able” investment recommendations.


Regulatory differences between


RIAs and Wall Street advisors will


remain, but Reg BI brings the wealth


management industry a giant step


closer to a uniform standard of care—


a big win for clients.


“I think it’s going to raise the qual-


ity of advice for the industry,” says Jim


Hays, president of Wells Fargo Advi-


sors, which comprises about 13,500


financial advisors.


As they race to comply with the


new rules, advisors find themselves


guiding clients through the market


roller coaster. They say clients are


generally calm but have questions. “It


basically boils down to, ‘Am I gonna


be OK?’ ” says Andy Sieg, who over-


sees more than 14,700 brokers as


head of Merrill Lynch Wealth Man-


agement. “They’re not panicked,


though. They just want reassurance.”


Erin Scanell, CEO of Mercer Island,


Wash.–based Heritage Wealth Advi-


sors, says his team members have sent


letters to all of their 5,000 clients, and


most of the 200 or so who have re-


sponded want to stay the course or


look to buy more stock.


In selecting our Top 1,200 advisors


each year,Barron’saims to pinpoint


those who already provide exceptional


client care. The group this year—state-


by-state listings start on page S17—is a


little grayer but more prosperous than


it was five years ago. The average age of


the advisors on our list has climbed to


55 from 54, while the client assets man-


aged by their teams have grown 24%


since 2016, to an average of $2.8 billion.


What hasn’t changed is the Top


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SEC regulations taking effect in June will require


morewealthmanagerstoputclientinterestsirst.


It’s a development the best inancial advisors welcome.


By STEVE GARMHAUSEN


Illustration by KEITH NEGLEY

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