[pullquote]…the wirehouse channel has a rich deposit of potential candidates for independent advisory firms[/pullquote]
With the constant changes that occur in the financial services and banking industries, it is no surprise that many brokers are keeping their options open. Wirehouse brokers have been looking to breakaway into the independent channel. This means RIA firms now have more options than ever to hire great talent.
Pershing performed a study and said, “…the wirehouse channel has a rich deposit of potential candidates for independent advisory firms—the branch managers. Because of the nature of their jobs, those professionals can set strategies, communicate initiatives and develop businesses.”
RIA firms have had the luxury of not increasing their staff due to recent layoffs because the principals cut their own salaries when their annual revenues decreased. Also, many people needed financial advice more than ever during the economic downturn.
According to Donna Mitchell, RIAs Can Look to Other Channels for Growth, “RIA principals should also consider that at the end of 2008, there were almost 310,000 financial advisors in the industry, and just 6% were in the RIA channel.” There is an untapped resource for RIA firms to hire brokers from the wirehouse channel who are ready to make a move.