#Article: Fifteen MacBank brokers defect to Adelaide rival

[Howie]

This sort of thing doesn't happen every day here.

Fifteen MacBank brokers defect to Adelaide rival
Article from: The Advertiser

ANTHONY KEANE

October 31, 2007 06:25am

ADELAIDE'S biggest stockbroking firm, Macquarie Private Wealth, has gutted the city office of its fiercest rival, Goldman Sachs JBWere.
In a mass resignation last night, 15 of GSJBW's 16 Adelaide stockbrokers and financial planners walked out and immediately signed with Macquarie.

Seven other GSJBW support staff are also expected to be offered jobs by Macquarie.

It is believed reasons for the daring raid include staff dissatisfaction at GSJBW, where changes in its strategy have required brokers to reduce their number of clients to 100 and set minimum commission requirements for each client.

The former GSJBW advisers declined to comment.

"That might change in due course, but it's just not appropriate at this stage," one said.

GSJBW state manager Ian Southwood, who is not among those making the move, could not be contacted last night and the company's national spokeswoman declined to comment.

Macquarie Private Wealth state manager Kieran Purcell would not talk about the specifics of the move but said Macquarie had been looking to expand its Adelaide footprint.

"Over the past 12 months, Macquarie has been active in the Adelaide market, believing South Australia is on the verge of a major economic upswing," he said.

Last night's raid was the biggest change to Adelaide's stockbroking community since Macquarie bought Day Cutten in 1999.

Macquarie already has 28 stockbrokers and 12 financial planners in Adelaide and adding the new GSJBW team will lift it to more than 50.

Baker Young Stockbrokers said the move was "a momentous upheaval".

"This sort of head-hunting happens more frequently in the eastern states and overseas," Baker Young associate director Wesley Legrand said.

He said Macquarie's Mr Purcell was one of the most highly respected stockbroking managers in Australia.

GSJBW has been losing advisers to Macquarie all year. In March, its entire Gold Coast office left.

[SRW]

How extraordinary. Still, good news to hear of a company expanding.

[AtD]

I deal with GS-JBW every now and then though work. They're better than most of the fly-by-night advisers we to deal with, who have no idea. Most of them are glorified salesmen and rip-off merchants with barely any qualifications.

We also deal with JBW for back-office admin stuff. There's a rumour on the grape vine that we're breaking our ties with them in the near future.