Morgan Stanley Wealth Management has told its roughly 15,000 financial advisors that it is suspending its relationship with Shook Research, the firm that compiles the widely used Forbes rankings of top advisors. The move, first reported by AdvisorHub, comes weeks after The New York Times disclosed that Shook Research's founder, RJ Shook, paid $6 million to Randall Lane, then Forbes' chief content officer, without Forbes' knowledge.
In a memo to advisors, Barry Krouk, Morgan Stanley's chief operating officer for field management, said the firm had decided to pause participation in Forbes and Shook rankings and conferences. The memo acknowledged that advisors had incorporated these accolades into their marketing and professional development, and pointed to alternative digital marketing resources as a replacement. The suspension is effective immediately, though it is unclear how long it will last.
RJ Shook, who sold his eponymous research firm to private equity firm PPC Enterprises last year, issued a statement defending the payment as recognition for Lane's guidance and the success Shook achieved as a result. Shook Research separately announced it would take additional steps to bolster the independence of its rankings and plans to change its branding in the near future. The company said it remains focused on providing a trusted measure of excellence for advisors and their clients.
The controversy has cast a shadow over the lucrative rankings industry, which has become a significant revenue source for business publications as print advertising declines. Forbes, like many outlets, has expanded into rankings, events, and awards to generate income. The Forbes advisor list, produced in partnership with Shook Research since 2016, is one of the most recognized in the wealth management field, and many advisors use it to market their services.
Lane, who was dismissed from Forbes in August, admitted to the payment and called it a serious error in judgment. Forbes has said it is conducting an independent review of its wealth advisor lists to ensure they comply with governance policies and journalistic standards. The company said it has not found evidence that the integrity of the rankings was compromised.
The fallout may extend beyond Morgan Stanley. Industry observers are watching whether other large wirehouses and broker-dealers will follow suit. The dismissal of Forbes' top editor has raised questions about the objectivity of such rankings, which are often used by advisors to attract high-net-worth clients.
For advisors, the suspension could affect their marketing strategies, as Forbes recognition is a common credential in client pitches. Some may turn to other lists, such as those from Barron's or rival firms, but the credibility of all such rankings is now under scrutiny.
Shook Research's promise to strengthen independence may help restore some confidence, but the industry is likely to demand more transparency. The payment to Lane, which was not disclosed to Forbes, has already led to his ouster and could prompt regulatory or legal inquiries. For now, Morgan Stanley's decision is a clear signal that the trust in these rankings is fragile.
