In fact, 92% of High Tower’s financial advisors have been picked off from traditional wirehouses according to Charles Roame, CEO of Tiburon Advisors.
Last week at the Tiburon CEO Summit XXII in New York City, Roame told the audience of financial executives that the breakaway broker trend of advisors leaving traditional wirehouses for independent firms was just beginning to heat up.
So the big question, according to Roame, is how will the wirehouses respond?
“If they want to retain advisors it is called 350% of trailing 12 months and I guarantee advisors will stay,” he said.
The other option would appear to be by creating a “halfway house” as an alternative which would offer advisors some of the benefits of independence and ownership while remaining under the wirehouse umbrella.
Roame predicts the “halfway house” will happen at some point this year…will watch with interest