Richard Stone Named to Bay Area's Top Independent Wealth Adviser List
May 23, 2008

Do unto others as you would have them do unto you is the Golden Rule for good behavior.  So when Richard Stone found a lost wallet chock-full of money at a professional seminar in San Francisco, he promptly turned it in to the lost and found.  To Stone, it was a given, based on the example his parents, who operated seveal Bay Area nursing homes in the 1950s, set years ago.

"It never crossed my mind to take the money in that wallet," he said.

It was also not surprising, given Stone's status as the man who wrote the first Code of Ethics for the Internatioal Assoication of Financial Planners (now known as the Financial Planning Association) in 1973-74.

Stone, who was a member of the first class to receive the now ubiquitous C.F.P. credential in 1973, after obtaining a business degree from San Jose State University, penned the document that contains the professional behavior standards financial managers are asked to follow.

So for that reason, among others, Stone has become the go-to guy for discussions of ethics at financial industry gatherings.  Through speeches and industry journals, Stone has drawn attention to financial industry practices he finds questionable, such as when brokers enrich themselves by recommending proprietary financial products in pursuit of commisions.  Stone, a fee-based adviser, prefers the registered investment approach, which imposes a fiduciary responsibility on an adviser, meaing they have a duty to put the welfare of their clients above their own.

"I want to see that the public is treated fairly," said Stone.

Stone founded Salient Wealth Management in San Rafael 25 years ago.  The 14-person firm manages almost $500 million in assets; the typical Salient client is a senior executive with at least $2 million to invest.  "Every new hre must come in and meet with me.  We talk about what our values are, and it is ethics above all," Stone said.

Stone has demonstrated this commitment.  For example: there was a Salient client who sent in small amounts consistently for investment, which the firm held until it reached sufficient levels to put in the stock market.  One quarater, the firm slipped up, and forgot to invest the sum.  Salient made amends by paying the client what she likely would have earned if she had been invested in the then-surging market.

"you have just earned a client for life," Stone recounts the amazed client saying to him.  "If we make a mistake, we fix it.  Fourtunately, we don't do this very often," he said.

On his own time, Stone plays golf, enjoys sport fishing, water and snow skiing with his family, which includes two sons, ages 17 and 22.

He doesn't want to stop working any time soon, but he's created a succession plan that involves selling his interest in Salient to key employees within eight years.

Not surprisingly, he's received overtures many times from big companies to sell out.  He's always declined.

 "I really love the culture we've created here," he said.