While other banks are under pressure to cut their dividends, UBS surprised analysts and investors with their announcement that they would begin paying dividends again. (The last cash dividends were paid in 2006.)

The announcement came at an investor event in New York last Thursday when UBS said it would cut investment bank risk-weighted assets by almost half and shift focus back to its core business of managing the assets of the rich as it pared its profitability targets.

Promising to implement a progressive capital return program, UBS stated they will cut its investment bank staff of 18,000 to 16,500 by the end of 2013 and 16,000 by the end of 1016, with most job losses accounted for by attrition and restructuring.

However, analysts said this reduction was only “marginally more than what the bank had already targeted and that the bank had left itself leeway to make further cuts.”

According to Jon Peace, banking analyst at Nomura in London, “the subtext is that this is a conservative number and they can go further, but if they say they are going to decimate the investment bank it could significantly raise employee turnover and execution risk”. *

Well, they didn’t go as far as investors had hoped in trimming down their scandal-hit investment bank, but with the announcement of the dividends, their shares were up 1% the following day.*

*Reuters, Friday, Nov. 18, 2011 “UBS Shares Rise on pledge to Restart Dividends”, by
Emma Thomasson and Martin de Sa’Pinto

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

As a recruiter, I spend a lot of time on the phone with potential candidates who are seeking a career change, or thinking of going independent, or wanting to establish themselves with one of the wirehouses.

Before we agree to meet, there is certain criterion that needs to be established. As any successful Financial Advisor will tell you, each time they meet with a client they focus on three questions. What does the client want to fix, accomplish, and avoid in their financial goals?

As financial recruiters, our focus is similar at Willis Consulting. Like our clients, we are a relationship-based business and we devote critical attention to matching investment philosophies, temperaments and work style between our clients and candidates.

So if you are an advisor contemplating a change, look carefully at your current firm and your business and then determine what you want to fix, accomplish and avoid…three essentials before a winning “match” can be made.

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

With plans to double the number of their FSAs by year’s end, the total number of advisors in the year-old FSA program will number more than 1,000.

This group of advisors represents the “Merrill Edge” – designed to combine the banking strength of BofA and investment insights of Merrill. They are securities licensed and trained in banking and investments by Bank of America. Their focus is on serving “preferred” customers. (Defined as those with investable assets between $50,000 and $250,000.)

Basically, the recruiting focus is to expand what started as a phone center-based operation, but is now moving more and more of these recruits into the banking centers for face to face interaction with these customers.

Why the big focus in clients with relatively modest wealth? Because there are 8 million of them according to BofA’s Cary Grace, a preferred sales executive at Bank of America, with assets worth more than $5 trillion.

Now THAT’s a lucrative segment that presents a lot of opportunity for any FA!

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

Did you know that non-bloggers are fast becoming the minority?

According to Hubspot’s latest study the number of companies that blog has grown from 48% in 2009 to 65% this year. And the ones that do blog have

- 55% more visitors
- 97% more inbound links
- 434% more indexed pages

compared to those that do not.

T.J. Gilsenan, journalist for OnWallStreet states that “blogging provides opportunities for advisors to interact with clients and prospects” and he offers six things FA’s can do to launch a new blog.

However, there has been some discussion on the validity of an advisor blog, with some RIA’s claiming web-marketing doesn’t work for them. Could be that “how” you use it and what kind of clients you cater to might be the key here.

On the other hand, advisors who are utilizing their company website are discovering ways to serve their clients and develop new business and successful blogging is rapidly becoming an integral part of this.

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

According to InvestmentNews Advisors on the Move database, the Big 4 wirehouses saw near historic lows in advisor turnover during the past 12 months ending March 31.

Merrill Lynch hired the most net new advisors over the 12 month period (517) and MSSB shed the most (340) UBS had 56 fewer advisors while Wells Fargo added 117 new advisors. 544 financial advisors changed firms and had  $76.8 billion in combined client assets at the time of their departures.

So, what does it all mean as far as recruiters are concerned?

Well, it is a “representative sample” of overall recruiting activity in the industry, but does not include all data on advisors moving among firms. The data is based on recruiting moves that were made public or disclosed to InvestmentNews by industry sources.

Noteworthy is UBS who recruited the most new advisors (74) and added the greatest amount of assets among the firms in the database…(who says they are looking to sell its U.S. wealth management business?) And Merrill generally does not disclose new hires according to company spokeswoman Selena Morris.

Add to this the fact that advisors who leave are usually announced by the firms that hire them and so the database has more information on Merrill’s departing advisors and less on its incoming ones. Merrill did add more advisors than it lost in each of the past five quarters.

AND, emerging firms such as CapTrust Financial Advisors and Dynasty Financial Partners LLC were involved in moves of some of the largest advisors last year.

Ok, so if you can make sense of all this, what can recruiters conclude? Revolving door is still revolving.

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

With the uncertainty as to what to expect from the SEC’s new fiduciary standard to be set for defining the financial advisor’s role on behalf of clients, Morgan Stanley Smith Barney is moving beyond just “buzzing” about the “what if’s”…

At last week’s Securities Industry and Financial Markets Association conference in NYC, Anne Cooney, general counsel in MSB’ legal and compliance department , told other panelists in attendance that despite not knowing how or when the new rules will take shape, MSB was already working thru different scenarios that may arise.

One of the biggest questions on the table is what level of communication wirehouses must offer to the different brokerage accounts including those that only use the firm’s call center, some with small balances and some with heavy stock concentrations from an employee’s company, not to mention those within the traditional advisory framework.

And what about the “hybrid” account where an advisor is expected to give advice on part of the account, with the investor controlling part of the brokerage trading? Will the fiduciary standard be the same for each type of account?

A whole other concern centers on disclosure and which rules apply and when and just how a firm is to measure and supervise compliance of all of these issues!

Just WHEN the new draft fiduciary rule from the SEC will be out, is up for debate with a feeling that this fall will be the earliest, and some predicting that it will come no earlier than 2013 (per Ronald Long, director of regulatory affairs for Wells Fargo Advisors and another panelist at the conference).

All said and done, what changes come and when they come, all panelists agreed that significant technology and operations overhaul were inevitable because nobody will be able to keep up with the onslaught of new rules many of which will be within “tight timeframes.” As Wells Fargo’s Long added…”All of you should start hugging your IT people!”

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

It was an interesting survey recently conducted by Grant Thornton LLP that pointed to the optimism of banking executives regarding the U.S. economy’s recovery in the next six months.

A robust stock market, stabilizing unemployment and improving corporate earnings obviously have an impact on their positive outlook.

One must ponder then over, the lack of increased hiring.

“Bankers are proceeding with caution focusing on building up capital and preparing for the costs of compliance and financial reform regulations”, reported Nichole Jordan, of Grant Thornton LLP. Supporting this feeling of confidence, are the high net worth investors with more than $2 million in assets beyond their primary residence whom expect their net worth to at least triple in the next decade.*

Which brings one to ask “Are our financial institutions to cater only to these elite high net investors?” If so, where are our Main Street investors going?

* (February report by the Scorpio Partnership and Standard Chartered Private Bank).

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

When you think of your branch manager, what images come to mind? Does your branch manger send off positive, negative or neutral vibes? Perhaps the message is mixed. Because he or she represents the management of your firm more than any other executive, that relationship is most influential in determining your image of corporate culture. In fact, it is your branch manager who runs the ship, sets the tone, and translates home office ideals into everyday practices.

Corporate culture refers to an organizations values, belief and behavior. It is concerned with how employees interpret experiences and behave. It is management’s job to articulate and demonstrate the desired culture. In other words they cannot simply talk the talk, but must walk the walk. Firms with strong corporate cultures are typically very successful. Employees are more focused on what to do and how to do it. Furthermore, the message sent to clients and prospects tends to be more on point and consistent.

Many years ago, I was an internal wholesaler for a wirehouse and I traveled nationally promoting a product line. I had the opportunity to visit over a hundred branches, spending time with our managers and financial consultants. The differences among branches were shocking. Some were well organized and productive and others, well; they were disasters. Generally, the advisors at the less successful branches had negative opinions of the firm and there branch manager. Advisors at success branches usually felt good about the firm and either admired or at least respected their manager. It became evident that leadership and the culture they created were vital to my firm’s success at a local level.

Somewhere during my two year nomadic stint, I decided that I wanted to become a branch manger. Granted, I was tired of living out of a suitcase, but the real appeal was to be in a role where I could make a difference. So, I continued to travel the branches, and carefully observed branch mangers words and behavior. It became clear that manager’s presentations and attitudes had profound effects on advisors perception of the firm as well as their ultimate productivity.

This was the 80’s and as hard as it may be for some of you to believe, firms in that era aggressively promoted proprietary products. Government bond funds were the rage and most firms had their own version. Senior management expected every branch to participate in the initial offering and branch mangers were held accountable for performance. At most firms, the heat was on and it was clear that this was key initiative. My firm, which by the way is no longer in business, was no exception.

I was fascinated by the different ways mangers handled the dynamics of this offering. There was a group that preformed poorly and in the process lowered morale. Another that got the job done at the expense of branch culture. And finally, those leaders who engineered the desired results while also creating a positive team experience.

It was hard to believe how some of our managers were addressing the government fund in their sales meetings. I heard various versions of this approach. “Hey guys, this thing looks pretty good and the firm wants everyone to sell it. They are really putting a lot of pressure on me so help me out here” This appeal asked the advisor to help protect the manager from the big bad firm. The message was the firm does not care about the advisors or client interests, but my poor boss needs me to sells this stuff and help protect his job. Both the product and firm lost credibility while netting weak sales.

Then there where those with a heavy handed approach. “You will sell a lot of this fund or else!” This management style was fraught with threats and deals. Establish advisors were bribed with branch amenities. Goodies such as secretarial coverage, syndicate and account distribution were all tied to advisors ability to push the deal. Rookies were told to sell the deal if they wanted to survive! This technique usually yielded strong sales, but proved culturally destructive. Manager who operated in this fashion created a climate of fear which ultimately led to general negativity and advisor retention problems.

So how were some managers able to achieve top results while creating a positive cultural experience for their branch? First of all, they focused on the softer concept of customer needs rather than the numbers. It was obvious to everyone that the firm was pushing the product, but the best leaders focused on why it was a great idea, where it fit, and how to present it. They enlisted the support of branch leaders and asked them to share their success stories. The fund in these offices became a smart idea that was the right thing to do for clients. Not only did the manager like it, but the best advisors in the branch were all over it. There was idea sharing, team building, and great results. When I visited with advisors in this type environment, they were proud of how highly their branch ranked in the offering.

It is your leader in an organization who is most influential in establishing your perception of culture. My son played basketball growing up and was fortunate enough as a youngster to be on some very successful teams. We were both thrilled when he made the high school team, but I was floored by the presentation the head coach made at the first parent meeting. Coach told the crowd that he had been around for a long time and knew that none of our boys would ever be division one players. He added that we did not recruit players from outside our area, like some of our opponents who break the rules, so it not likely that we will win that many games. I heard this exact speech for four consecutive years thus felt confident that the boys consistently heard a similar message. He created the following culture: none of you are great players; our opponents beat us because they cheat; and we will not win many games. Unfortunately, the environment he created produced the results he expected. By contrast both our football and baseball teams who had very positive leaders won championships during the same timeframe.

The era of the product push has passed, but the pressure is still on branch managers. These days the focus is squarely on recruiting, a subject dear to heart. Much like your old college professor might have told you that he must “publish or perish”; your branch manager’s career trajectory is closely tied to his or her recruiting track record. Like the old basketball coach, some managers create a losing culture for their firms. They tell me that “it’s impossible to recruit in this town”, or “how can I recruit when the other firms have a better financial package?” So, what separates the great recruiting mangers from the rest of the pack?

The best recruiting branch manager are empathetic, positive, and passionate. Rather than just pitching their firm, they focus on understanding the details of a candidates business and personal life. They then discuss how that business might fit, and how the individual would prosper in the new culture. Whereas money is a key element in a candidate’s decision, top recruiting managers know that most are looking because they are unhappy with their current branch manager and the associated local culture.

Unfortunately, many branch managers are not happy with some of today’s trends. Certain managers feel that their firm affords them less freedom to create and make decisions a local level. Blaming mergers and increased regulatory pressure, they complain that it is more difficult to establish that unique corporate culture which traditionally had differentiated them. It seems that many feel that they are being asked to take on more responsibilities for the same or even less pay. Last but not least, the general compensation compression facing branch managers is not being well received.

Consolidation and complexing have forced an unprecedented number of experienced mangers to look for new positions. It is truly a buyers market and some are paying mangers what they can rather than what they are worth. To me it seems penny, but pound foolish for a firm to take advantage of the market at the expense of their leaders. If management discounts the leaders who are in charge of corporate culture, they risk harming the moral of those who represent their firms to a significant group of their employees and clients.

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

Building a recognizable brand name takes time, but will ultimately keep existing clients loyal and attract new business as well. When developing your brand, you need to think about how you choose to run your business. Make sure when you establish your brand name, to be consistent in how you provide your services.

For instance, many clients like to be able to contact their financial advisors when they need them. Make sure to follow up with your clients in a timely manner. If your sales assistant is the first point of contact, make sure he/she assures the client the issue will be handled in a timely manner.

If an error has been made on an account, be sure to contact the client personally to discuss the issue and explain how it will be resolved immediately. Being honest and upfront with your clients will build their trust.

Brand recognition has worked for many years with any company in any industry. Many people can associate a product right now by a song or advertisement they saw on television. It is a very powerful tool for every employer.

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs

How do you know when you have found the right candidate for your firm? Many firms looking to hire someone receive hundreds of resumes these days because the unemployment levels are so high. There are some things to consider when you start to set up interviews.

The first and most important is to really think about the type of candidate you are looking for. This will help you figure out where to recruit. For example, is there anyone in your office that has the same qualities you are looking for?

You should be as detailed about the position as possible and highlight the areas of most importance. Try to let them know why this position is unique so they will be more interested. Remember, this is not the first interview these candidates have been to and may not be their last.

Always make sure you have enough qualified candidates to choose from and make sure you are asking the right questions in your interview. Try to be as detailed as possible so you can learn as much as possible about this individual. If you are in a smaller firm, they will need to be able to mesh well with your entire team. Have other individuals in your team meet with the candidates as well. Your team members may ask questions that you may not have thought of.

Even though you may need to hire someone quickly, take your time finding the right candidate. This includes having multiple meetings with a select few candidates. If you rush, it may end up costing you more money in the long run.

Financial Advisor Recruiters - Recruitment Firm for Financial Advisor Jobs