Goldman Wealth Adviser Breaks Away -- Street Moves

By Michael Wursthorn Features Dow Jones Newswires

A Goldman Sachs Group Inc. financial adviser who oversaw $1 billion in assets is launching his own firm, the bank's latest wealth-management departure.

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David Darby, a vice president in Goldman's West Palm Beach, Fla., office, said he is launching his own practice, DG Wealth Partners, to tap into the growing demand for independent, family-office-style financial advice.

"The future of the wealth-management business really is in the independent space," said Mr. Darby, a 21-year Goldman veteran. He added that being able to recommend third-party investment products, not just products manufactured by Goldman, was also behind the decision.

Late last month, Goldman lost two wealth-management vice presidents who worked in the firm's Chicago office. Goldman has since sued the former employees, accusing them of trying to lure two of its clients before their move in violation of a non-solicitation agreement. That action is continuing as Goldman also pursues an arbitration claim on client poaching with Wall Street's self-regulator, the Financial Industry Regulatory Authority.

A Goldman spokesman didn't immediately respond to a request for comment.

Mr. Darby declined to comment further on his departure from Goldman.

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Mr. Darby worked with Dynasty Financial Partners to launch his own practice. New York-based Dynasty, which specializes in helping advisers launch their own wealth-management practices, has launched nine other independent firms so far this year.

Write to Michael Wursthorn at Michael.Wursthorn@wsj.com

(END) Dow Jones Newswires

June 05, 2017 15:29 ET (19:29 GMT)