So what happened to the historic December “quiet period” for wirehouse recruiting?

(With FINRA traditionally shutting down the last two weeks of the year, switching firms is made more difficult).

But wait, financial recruiters were surprised at the latest numbers by Discovery Database who reported 425 wirehouse advisors changed firms in December, up from only 177 in November, and actually the largest movement since August.

Another revealing fact is that only 38% who changed firms in December stayed within the wirehouse channel.

So, are these just the middle producers being weeded out and going the independent route?  Read more...

Are you a Financial Advisor thinking of moving?

Well, don’t think too long…Good advice in Consultant Carri Degenhardt-Burke’s feature article for December issue of QnWallStreet:

While the last couple of years have been incredibly good for advisor recruiting, the game isn’t over yet. A much needed slump over the summer has created still more opportunity for you. But don’t wait too long, as the recruiting tides will be changing again.

Once you have been coached by a knowledgeable recruiter about the parameters of a deal, be prepared to make a decision.  Read more...

Fidelity Investments joined TD Ameritrade in providing a web based tool that helps advisors who are considering leaving the wirehouses decide which independent model is best for them.

The “Financial Advisor Economic Estimator” tool enables advisors to compare the wirehouse model to three common independent business models:

• Starting their own RIA advisory firm
• Partnering with a third party by joining or acquiring a firm
• Affiliating with an independent broker-dealer.

Along with Ameritrade’s “Business Evaluator”, these tools were put in place to boost their recruiting of breakaway advisors, along with other inducements like fee wavers and price cuts.  Read more...

And you are correct; they were predominantly lower-producing advisors.

Citi’s January implementation of a two-tier system, which includes an automated commission-based service for “mass-affluent” clients and the FA fee-only service model forces advisors to transition to fees. (They are still allowed to use the commission only platform on their client’s behalf, but those sales are NOT credited to the advisors’ pay grids…what a “deal.”)

Most of Citi’s financial advisors don’t have near 100% of their assets under management in fee-based business. Oh, and the reps also have to sign 9 year contracts and be rearranged into a “team”…based on production, of course. Consequently, a lot of them are out the door.  Read more...