By Michael Wursthorn
A pair of Morgan Stanley (MS) financial advisers has left the
company to form their own independent firm, aiming to take as much
as $800 million in assets with them.
Scott Highmark and Larry Shikles launched their registered
investment advisory firm, Mosaic Family Wealth, on Monday with the
support of Dynasty Financial Partners. Six other Morgan Stanley
employees are joining the pair at the St. Louis, Mo.-based
firm.
A Morgan Stanley spokeswoman didn't immediately return a message
seeking comment on Monday.
Mr. Highmark, a Morgan Stanley adviser that joined by way of its
acquisition of Smith Barney in 2009, said he and his team came to
believe that, because of changes in the industry, leaving a large
firm and forming their own advisory firm would "allow us to enhance
our client experience."
"There will be more transparency [around] fee disclosure, how we
get paid and how the custodians get paid," Mr. Highmark.
While researching various options, some of his former Smith
Barney colleagues put him in touch with Dynasty's founder and chief
executive, Shirl Penney. "The way [Dynasty] puts together a firm,
it matched exactly what we wanted and needed," Mr. Highmark
said.
New York-based Dynasty provides independent adviser teams with
access to a platform for trading, clearing, research and other
support services. While it does offer financing options for
advisers setting up their own firms, it doesn't own the firms and
the advisers aren't employees of Dynasty.
Messrs. Highmark and Shikles resigned from Morgan Stanley on
Friday, after eight and 22 years, respectively, at Smith Barney and
Morgan Stanley. They managed about $800 million in client assets
there.
(Street Moves chronicles the migration of executives on Wall
Street, with a particular emphasis on financial advisers with more
than $1 million in annual production and those who manage more than
$100 million in client assets. Michael Wursthorn can be reached at
212-416-2218 or at michael.wursthorn@wsj.com.)
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