[pullquote]A desire for a higher payout (came in) third place among rationales for leaving[/pullquote]
Wirehouses have been beaten up lately mostly because of all the bad press and the destruction of their brand names. Financial advisors are looking to breakaway to other channels. Every channel has seen double-digit growth within the past year except the wirehouse channel. Granted, they still have the majority market share.
With this troubled economy we see a significant amount of advisors looking to breakaway primarily due to lack of cash flow. Advisors are getting paid up front for moving to another firm and that helps those who are struggling. It does surprise me that financial advisors are willing to leave a quality firm or wirehouse just for the money. It is unfortunate to see because is this really helping their clients or are they just being self-serving?
According to a survey conducted by the Aite Group, “A desire for a higher payout (came in) third place among rationales for leaving…”
Wirehouses are aggressively trying to retain advisors while recruiting advisors from other channels or younger advisors. It is a tough uphill battle for wirehouses, but the deals they are offering advisors to move may be too good to pass up as well.