JPMorgan appoints head of new Midwest wealth management division

JPMorgan Chase is adding further support to its network of bank branch-based advisors with the appointment of a head for its newly established Midwest region.

The megabank has named Beth Brown, a 25-year veteran of the firm, to oversee the division, according to an internal memo. Brown will oversee advisors in Chase branches in Ohio, Kentucky, West Virginia, Michigan, Indiana, Illinois and Wisconsin.

JPMorgan's new Midwest division will join its East division, overseen by Michael Ayerov; its West division, led by Nikki Hartung; and its Central division, led by Matthew Wilson. Brown, who had worked out of Plano, Texas, was previously a regional director for branch-based advisors in the Dallas and Fort Worth region. Her new role will have her operating out of Columbus, Ohio.

A spokesperson for JPMorgan said neither Brown nor anyone else was available for comment on Friday. According to a statement released the previous day: "Adding a fourth division helps us better support our financial advisors as the wealth business grows. We continue to invest in providing support for our advisors to enable them to keep growing their practice and help clients reach their financial goals."

Phil Waxelbaum, an industry recruiter and the founder and CEO of Masada Consulting, said the appointment shows how serious JPMorgan has become about its ambitions to build out a network of branch-based advisors. 

"This is the loudest messaging that they've had that they aren't done yet," Waxelbaum said. "It's a very expensive proposition to set up a new division, costing several millions a year for a divisional director and staff."

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In building out a network of branch-based advisors, Waxelbaum said, JPMorgan is likely looking toward one of its biggest competitors: Wells Fargo. Wells, he said, has long had a business model that put advisors in branches where they could offer not only wealth management advice but also a wide range of banking services. And Citi under Andy Sieg, its newly appointed new head of wealth management, is pursuing a similar strategy.

JPMorgan made its first big foray into the advisory business with its purchase of the now-defunct investment company Bear Stearns in 2008. It made its second big acquisition in the wealth management business this spring with its purchase of the failing First Republic Bank. 

That deal brought over roughly 200 advisors, pushing JPMorgan's headcount for its Banking and Wealth Management unit to 5,424 by the end of the third quarter. JPMorgan meanwhile operates a private bank with nearly 3,500 advisors working with high net worth and ultrahigh net worth clients.

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The private bank itself recently underwent its own divisional restructuring. In May, JPMorgan announced plans to set up separate Midwest and South divisions within its former Central Region.

Besides advisors in its bank branches, JPMorgan's wealth management division has personal advisors who provide advice over video services and a self-directed online investing system.