A Los Angeles-based planner is joining Prime Capital Financial as a partner and wealth advisor to help build the firm's footprint in Southern California.
Andrew Selu is joining Prime Capital from Edelman Financial Engines, where he was director of financial planning for more than two years. It is one of several recent examples of the transfer of Edelman representatives to Prime Capital (some of whom launched lawsuits to break their former firm's covenants).
Selu entered the industry with Fidelity Investments as a benefits and planning consultant, where he worked with clients, including C-level executives of TPMG and Intel, on brokerage, money management, estates, financial needs and retirement planning, according to the profile of his on LinkedIn.
At Edelman, he worked with clients in the LA area on “tailored financial plans,” including investment management, retirement and estate planning, and wealth preservation. According to Prime Capital CEO Glenn Spencer, Selu's industry knowledge made him “a great addition” to the firm.
“His success in retirement planning, investment management and solving complex financial challenges demonstrates his ability to provide tailored solutions that meet the diverse needs of his clients,” said Spencer.
Selu is the latest in a growing number of Edelman employees leaving this year for Overland Park, Kan.-based Prime Capital Financial, which has more than $24 billion in assets under management (firm renamed from Prime Capital Investment Advisors last July). Some departures have played out, to varying degrees, in the courts.
in February, former Edelman advisers Jennifer Staben and Tim Dowden sued their former employer in state courts in California and Texas, respectively, trying to get out of what they considered “unenforceable” non-solicitation covenants that bound them to their former firm.
Dowden argued that the contracts were used to “discourage” him and other Edelman employees from seeking employment elsewhere, while Staben felt the agreements put him (and other advisers) in a “dilemma.”
“They can either comply with overbroad and illegal restrictive covenants to avoid being sued, but, in doing so, risk breaching the fiduciary duty owed to their clients, or seek to challenge overbroad restrictive covenants at risk of being sued in order to fully comply with the fiduciary duty owed to their clients,” Staben's complaint said.
But in a countersuit to Dowden's claims, Edelman accused the adviser of “flagrant breach of contract,” arguing that he had started working for Prime Capital before resigning and allegedly recreated a list of Edelman's clients with whom was working “on behalf of or for the benefit of Prime Capital” (the Dowden case is ongoing, while Staben sought to dismiss her claim without prejudice in March).
California-based advisor Felix Kwan recently sued Edelman after he left for Prime Capital, claiming his non-solicitation covenants violated California state law. (Kwan later decided to drop the case.)
in October, North Carolina Councilman Josh Hederick sued Edelman for breach of his restrictive covenant after he left the firm for Prime Capital. He claimed the pledge was “too broad”. He argued that Edelman's alleged penchant for “aggressively suing” departing advisers led him to believe the firm would not participate in his departure “in good faith.”
In the case of Kwan, Staben and Dowden, the advisers were represented by attorneys with Spencer Fane, a Kansas City-based law firm that frequently provides legal services to Prime Capital.
When asked about the frequency of advisors moving from Edelman to Prime Capital, a spokesperson for the latter firm responded only that Prime Capital “offers advisors a dynamic environment where they can realize their potential and better serve clients ” and that it was proud to “provide a platform that resonates with their professional aspirations.”
A spokesman for Edelman Financial Engines said advisers, like all other employees at the site, were free to change jobs “for any reason”.
“This happens in all firms, not just ours, and there has been a lot of movement in the industry recently,” the spokesman said. “EFE has a strong culture with incredible talent in our community of planners. We value their work to help our 1.3 million customers every day. Our focus is to invest to drive innovation and support them to do their work productive and successful, and to ensure that EFE is Place planners want to grow and create a lifelong career.”
Prime Capital recently hired Jania Stout will lead her own retirement planning and financial wellness consulting company. Stout came to Prime Capital from Atlanta-based OneDigital, where she was a senior vice president of retirement and wealth.
“Prime Capital Financial understands what is at stake for retirees and has built an exceptional team in its retirement practice,” Stout said in a statement about the move.