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.
But, as we’ve seen these past weeks, the wirehouses (i.e. Morgan Stanley and Merrill) have been begun signing bonuses that could exceed 300% of brokers’ annual production.
The “tug of war” in recruitment of FA’s between the wirehouses and the independents is stronger than ever and I foresee more competition than ever in the following months.
Follow @willisconsult