It looks to be another challenging quarter for Citigroup brokerage unit Smith Barney as the firm continues to lose representatives and advisors, according to Investment News.

Over the first seven weeks of 2009, New York-based Smith Barney saw 539 brokers leave, according to a source outside the firm with knowledge of the departures. That translates into 77 brokers leaving each week from 1 January to 19 February.

The recent exodus follows Smith Barney’s loss of 970 brokers in the fourth quarter in 2008. For the entire year, the firm saw its advisor head count drop 11 per cent to 13,765.

The departures include a range of financial professionals, from trainees who were let go by the firm to veteran producers recently recruited by rivals, the source told IN.

Big winners include rivals such as Wachovia and UBS, who picked up 115 and 113 advisors, respectively.

Industry observers also stressed that many firms across the brokerage industry are firing brokers who produce less than $500,000 in fees and commissions each year.

A Smith Barney spokesman said the firm would not comment on its head count figures beyond those it releases at the end of each quarter.

Brokers left in the fourth quarter due to the demise of Smith Barney’s parent, Citigroup, another spokesman said. Now the advisors could be leaving because of displeasure at the firm’s preparations to be the junior partner to former rival Morgan Stanley of

New York in the two firms’ impending joint venture.

In January, Citigroup said it would exchange Smith Barney for a 49 per cent stake in a new firm, dubbed Morgan Stanley Smith Barney, and a $2.7 billion cash payment. Meanwhile, Smith Barney brokers have kept a few perks, according to a news report Monday.

After cancelling an annual trip designed to reward its top brokers, Citigroup paid out $3.5 million worth of gift cards, according to The New York Post. Last month, Citigroup gave the top 2,000 advisers at its Smith Barney brokerage unit debit cards worth $1,000, $2,000 or $3,000 depending on their performance, The Post reported.

Meanwhile, UBS said Monday it had named William Schoff, a 24-year financial services veteran, as a managing director in the

US.

In the latest move, UBS will support corporate clients and provide wealth management and education to employees involved in company stock plans.

The Schoff Group's 10 team members, including five financial advisors who also provide wealth management and corporate services, join him in the move from Citigroup, where Mr Schoff was a managing director and a senior adviser in the Citi Family Office, according to a UBS announcement.