November 25, 2012 – By Mindy Diamond, WealthManagement.com – When we think about remarkable years in terms of advisor movement, we immediately recall 2008-2009, when more than 20,000 advisors switched firms. I doubt we will ever see another time like that with a similar confluence of events and frenzy. While movement in 2012 feels relatively disappointing, particularly in the wirehouse space, the year will likely be remembered for a few surprises and highlights.
About Mindy Diamond
CEO – By counseling advisors on how to ask the right questions and “dig deep”, she helps them look at all of the opportunities available to find the one that allows them to reach their full potential. That is, to best serve their clients and live a life that is in sync with their own beliefs and values. Learn more...
Mindy Diamond Quoted – By Brooke Southall, RIABiz – FINRA is set to consider new rules that would lift the curtain on the terms and conditions of massive payoffs made by wirehouses to convince brokers to make a lateral move from another wirehouse.
By Mindy Diamond, WealthManagement.com – All advisors get frustrated with their firms at times and consider jumping ship, but only 22% on average actually change organizations in any given year. Yet restlessness seems to be on the rise. 29% of advisers at national wirehouses said they were considering leaving their firms in the coming year compared to 25% the year before, according to a study by Cogent Research.
By Mindy Diamond, WealthManagement.com – There has been a lot of talk in recent years about how the industry has changed—particularly in regards to the breakaway broker trend and the move toward independence. Every industry survey from the likes of Aite Group, Cerulli or Tiburon seems to reinforce the idea the breakaway trend is picking up steam. Tiburon recently found that “fee-based financial advisors have $2 trillion assets under management, up nearly 40 percent since 2005.”
By Mindy Diamond, WealthManagement.com – Irish novelist and poet James Joyce once said, “A man’s error’s are his portals of discovery.” While I agree with Joyce in concept, in reality, we all want to make as few mistakes as possible – particularly as they relate to our careers. Especially during this time of uncertainty, with many firms imploding and others consolidating, it has become even more important for advisors to carefully consider career moves. Fortunately, with enough knowledge and counsel, there are ways to navigate the career path minefield and learn from the mistakes and missteps of those who have gone before us. Sometimes, though, that’s easier said than done.
By Mindy Diamond, WealthManagement.com – In the eight years since it was written, 801 firms have signed onto the so-called broker protocol, which defines what kind of client information a departing broker can take with him to a new firm. That, in turn, determines the ease with which an advisor can take his clients, and their accounts, to the new joint. Advisors are allowed to take client names, addresses, phone/fax numbers, email addresses and account names; they can’t take tax ID or social security numbers, client statements, account numbers, or any other financial documentation pertaining to the clients.And they can’t let their clients know about the move or solicit them before they make the switch.
June 5, 2012 – By Mindy Diamond, WealthManagement.com – Philip Noble always wanted to create a legacy. After graduating from the College of Wooster in 1976, he spent more than a decade working for Fortune 500 companies in the benefits and pensions field. It was going well, but something was lacking. He wanted to build a business that he could leave behind. With that in mind, in 1990, he opened his own firm called Noble Wealth Management, affiliated with a life insurance company, and quickly attracted small business owners who had pension design and estate planning needs. As a business owner, Phil enjoyed building a culture for his firm and running the day-to-day business, but he began looking around for a b/d that would help him accelerate growth. Soon after, he affiliated with LPL Financial, attracted to the additional products he would be able to access and the extra services and support that he felt would add value for his clients.
By Mindy Diamond, WealthManagement.com – In March, Peter Sargent stunned the wirehouse community by leaving Merrill Lynch to launch Sargent Wealth Management at the Philadelphia, Pa.-based regional firm Janney Montgomery Scott. Sargent, who is 42, worked at Merrill for two decades, and had just begun in January a term as Chairman of Merrill’s esteemed national Advisory Council to Management (ACTM), which advises Merrill management on advisory issues. His career has so far been littered with accomplishments. During his years at Merrill, he was frequently named to Barron’s Top 1,000 financial advisors; in 2006 at the age of 38, he was named among the “Top 40 Advisors Under 40″; and he has often been interviewed by national media outlets for his financial acumen.
By Mindy Diamond, WealthManagement.com – Mitch, a 25-year wirehouse veteran with $500 million in client assets in the Midwest, began considering his options for a move in 2008. He was tired of the bad press about his firm and other wirehouses and decided he was financially prepared to forgo a 300 percent incentive check; he liked the idea of independence. On his own, Mitch began doing due diligence with several custodians to explore partnering with one of their existing RIAs. He had no interest in being distracted from his clients to set up his own firm; he wanted to stay focused on growth. But because of differences over economics, infrastructure, culture, or business mix, none of the firms he talked to seemed the right fit. He also realized he preferred to create his own brand. He then started talking about creating his own firm, but outsourcing the back- and middle- office work like technology, compliance and other operational functions to a third-party platform or service provider.
By Mindy Diamond, WealthManagement.com – James and Nancy, a wirehouse team in a southeastern city, began looking around for new digs in 2008 but it took them a few years to make the leap. James and Nancy had been at a regional firm that was ultimately acquired by their wirehouse in the early part of the decade. Together, James and Nancy generate around $1 million in annual production. While they never would have chosen to move to a wirehouse on their own, given their aversion to additional layers of management and red tape, they tried to make it work at first.
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