Louis Diamond Quoted
By Michael Wursthorn
Morgan Stanley will scale back the recruitment loans it offers to attract rival brokers to comply with new retirement regulations, and competitors Merrill Lynch and Wells Fargo & Co. are weighing similar moves, underscoring the far-reaching impact the rules are having on the multitrillion-dollar financial-advice industry.
“Recruitment deals are going to change and not for the better” for brokers, said Louis Diamond, vice president of Diamond Consultants, a broker recruitment firm. He added firms may consider alternatives to continue hiring brokers from one another, such as higher salaries, which wouldn’t be an issue under the rule.
