Concentus, Latin for "harmony," is using Charles Schwab Corp to hold client assets and execute transactions. The group will continue to buy research and tactical strategies from Dorsey Wright & Associates, a Richmond, Va.-based "technical" money manager. It will retain web-based financial planning software from eMoney Advisor, and use Envestnet's reporting and portfolio balancing tools.
The Strids were part of a small unit at Wells called "Profit Formula" that allows brokers to keep about 75 percent of the revenue they collect from clients but charges them for the costs of running their practices. Most big brokerage firms pay top brokers about 45 percent of the commissions and fees collected from clients, but provide overhead and other services gratis.
Wells is not allowing new advisors into Profit Formula, said brokerage spokeswoman Rachelle Rowe, because it has separate "channels" to accommodate those who want to be completely independent and others who are full-time employees. Many of the most successful of Wells' more than 15,000 retail brokers are in Profit Formula and tend to move less often, she added.
The bank is likely restricting growth of Profit Formula to maintain better risk control, since advisors in the unit have more latitude to manage clients' money, or for reasons related to profit margin but the Strids did not feel pinched by any changes, Erik Strid said.
The spokeswoman declined to comment on the Strids or on the number of Profit Formula advisors. A headhunter and two Wells Fargo insiders estimated the unit has 350 teams with 1,000 advisors.