A Los Angeles-based planner is joining Prime Capital Financial as a partner and wealth advisor to help build out the firm’s Southern California footprint.
Andrew Selu is joining Prime Capital from Edelman Financial Engines, where he was a director of financial planning for over two years. It’s one of several recent examples of Edelman reps moving to Prime Capital (several of whom launched lawsuits to break the covenants of their former firm).
Selu entered the industry with Fidelity Investments as a benefits and planning consultant, where he worked with clients, including TPMG and Intel C-level executives, on brokerage, money management, estate, financial and retirement planning needs, according to his LinkedIn profile.
At Edelman, he worked with clients in the L.A. 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 “an excellent addition” to the firm.
“His success in retirement planning, investment management and resolving complex financial challenges demonstrates his ability to deliver tailored solutions that meet the diverse needs of his clients,” Spencer said.
Selu is the latest in a growing number of Edelman employees to depart this year for Overland Park, Kan.-based Prime Capital Financial, which has more than $24 billion in managed assets (the firm rebranded from Prime Capital Investment Advisors this past July). Some departures have played out, to varying degrees, in the courts.
In February, former Edelman advisors Jennifer Staben and Tim Dowden sued their prior employer in California and Texas state courts, respectively, trying to break out of what they considered “unenforceable” non-solicitation covenants shackling them to their former firm.
Dowden argued the contracts were used to “discourage” him and other Edelman employees from seeking work elsewhere, while Staben felt the agreements put her (and other advisors) in a “dilemma.”
“They can either comply with overly broad and unlawful restrictive covenants to avoid being sued but, in doing so, risk violating the fiduciary duty they owe to their clients, or seek to challenge the overly broad restrictive covenants at risk of being sued so as to fully honor the fiduciary duty they owe to their clients,” Staben’s complaint read.
But in a counterclaim to Dowden’s allegations, Edelman accused the advisor of “flagrant breaches of contract,” arguing he’d begun work for Prime Capital before resigning and allegedly he recreated a list of Edelman clients he worked with “on behalf of, or to the benefit of” Prime Capital (the Dowden case is ongoing, while Staben requested to dismiss her claim without prejudice in March).
Recently, California-based advisor Felix Kwan sued Edelman after leaving for Prime Capital, claiming its non-solicitation vows defied California state law. (Kwan later opted to drop the case.)
In October, North Carolina advisor Josh Hederick sued Edelman for breaking his restrictive covenant after leaving the firm for Prime Capital. He claimed the vow was “overly broad.” He argued that Edelman’s alleged penchant for “aggressively suing” advisors who left led him to believe that the firm would not participate in his departure “in good faith.”
In the case of Kwan, Staben and Dowden, the advisors were represented by attorneys with Spencer Fane, a Kansas City-based law firm that often provides legal services for Prime Capital.
When asked about the frequency of advisors moving from Edelman to Prime Capital, a spokesperson for the latter firm replied 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.”
An Edelman Financial Engines spokesperson said advisors, like all other employees in the country, were free to change jobs "for any reason."
"This happens at all firms, not just ours, and recently there has been a lot of movement in the industry," the spokesperson said. "EFE has a strong culture with amazing talent in our planner community. We value their work in helping our 1.3 million clients every day. Our focus is on investing to drive innovation and support to make their work productive and successful, and to ensure EFE is the place planners want to grow and establish a lifetime career."
Prime Capital recently hired Jania Stout to lead its retirement plan consulting business and financial wellness company. Stout came to Prime Capital from the 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 out an incredible team in its retirement practice,” Stout said in a statement about the move.
