Former IG exec to lead Richardson’s brokerage start-up

(May 15, 2003) Winnipeg’s Richardson family is preparing to re-enter the financial services business after leaving the industry nearly seven years ago. Sandy Riley, the former CEO of Investors Group, confirmed this week he is completing due diligence on a private equity division and a wealth management arm that he hopes to get off the ground for James Richardson & Sons Ltd (JRSL).

Riley says while a new company could be incorporated as early as this week, a formal announcement and launch probably won’t happen until sometime this summer.

“We’re looking at getting re-engaged in financial services. I’m quite comfortable we’ve got the making of two good business opportunities, but it’s going to take a bit more work. Stay tuned,” he says.

Riley declined to provide details of either venture but industry speculation is the “family wealth management” arm would hire between 200 and 250 high-end brokers in offices across the country.

“It may well be in the form of a brokerage platform,” Riley says. “The focus will be on helping families who have complicated financial requirements to achieve their objectives.”

Both Riley, a director at JRSL, and Hartley Richardson, its president and CEO, have been busy assembling a veteran management team for the two ventures.

Arguably the biggest catch is Toronto-based Sue Dabarno, former president and chief operating officer of Merrill Lynch Canada, and a 30-year industry veteran.

Riley says Dabarno is working with Mike Miller, former executive vice-president of Investors Group, who works out of the JRSL offices in Winnipeg, on developing a plan “for our possible entry into family wealth management.”

Stan Ing and Michael Sharp, both formerly of RBC Dominion Securities, and Jean-Guy Gourdeau, previously with Investors Group and Power Corporation, will further add to the bench strength, Riley says.

Riley notes the two would-be businesses are “totally unrelated” to each other except for the fact that both he and the firm are involved. “The timing will be different on both,” he said.

Riley declined to comment on any possible names. One possible moniker for the wealth management arm making the rounds in Winnipeg circles is “Richardson & Partners.”

JRSL, the family-owned holding company that owned Winnipeg-based Richardson Greenshields, sold the brokerage to RBC Dominion Securities in August 1996 for $480 million. JRSL also has significant interests in grain handling, food processing, oil and gas, and high-tech.

It has an existing private-equity division but Riley says he’d like to expand it.

Paul Bates, a Toronto-based industry consultant, says he’s not surprised to hear the Richardson family is preparing to resurface in the financial services business, where it first made its mark in the early 1970s with Richardson Securities.

“They have a lot of experience and heritage in the investment business, they enjoyed an excellent reputation and they treated their employees well. I would anticipate anything they do will be very meaningful and be of size fairly quickly,” he says.

Bates says the hiring of Dabarno was particularly noteworthy. “She’s very impressive, very knowledgeable, very decisive and has a broad background in all aspects of the investment business and banking business as well.”

Bates notes a number of current high-profile industry experts cut their teeth at Richardson Greenshields, including Chuck Winograd, president and CEO of RBC Capital Markets.

Geoff Kirbyson is a financial services writer based in Winnipeg.

(05/15/03)

Geoff Kirbyson