“Elite independent advisors are now earning close to the same compensation of top Wall Street brokers, with an average of $900,000 annually. Add falling Wall Street compensation and asset growth in the independent advisor channel and it becomes easier and more attractive for brokers to make the move to independent RIA status.”
These statements come from new research in the white paper entitled, “Compensation Parity: Why Clients, Independents and Brokers All Win,” by Jeff Spears, president and CEO of San Francisco-based Sanctuary Wealth Services.
Spears predicts that more traditional Wall Street brokers will move to the independent financial advisors side as the gap continues to close and they see the potential of making as much if not more.
The study shows that over the past three to five years, a growing volume of assets has left Wall Street for the independent advisors –wirehouse assets fell 7% while climbing 21% for independent advisors.
It’s an interesting study based on interviews with 60 top brokers and 25 elite RIAs of the huge changes we’ve seen in the industry over the past several years. Spears’ prediction that we’ll see a lot more movement to the independent financial advisor channel is not surprising.