By Mindy Diamond, WealthManagement.com – With so many independent models launched over the last several years, these advisors can now get the business ownership they seek along with the ability to monetize their businesses. But the economics of an advisor’s business can vary from firm to firm. Here’s how they stack up.
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Howard Diamond Quoted, Bloomberg – Breaking into the brokerage business is getting tougher as declining fees make small accounts less profitable and government restrictions on unsolicited calls make phone sales taboo. That’s leaving big firms struggling to replace a retiring generation of advisers who helped accumulate trillions of dollars of assets and generated steady profits for years.
By Mindy Diamond, WealthManagement.com – For many wirehouse advisors the lure of moving to the independent channel can be strong. These would-be “breakaway brokers” are largely free of the desire to be paid the biggest sum of money as an incentive, but are hungry for greater control over their business, the opportunity to create a brand and gain equity with less conflict and bureaucracy, and the ability to provide more customized services and products to their clients. So many top advisors and teams have chosen to go independent that, according to Cerulli Associates, RIAs and dually registered channels are the fastest growing with assets under management increasing by 13% and 19% respectively.
Mindy Diamond Quoted – By Paula Vasan, Financial Planning – According to a new study, the financial advisory industry is growing rapidly, while it’s shutting out women. Although women’s involvement in the sector has increased — women now comprise 36% of the industry, up six percentage points from 2003 — the gender pay gap has also grown over the past decade, according to a study by consumer website NerdWallet.
By Mindy Diamond, Investment News – I can think of very few industries that are as male-dominated as the financial services industry. In fact, according to a 2012 Cerulli Associates Inc. report, only 7.9% of financial advisers were women, whereas according to a 2012 U.S. Census, 50.7% of the population was female. This small percentage of female advisers becomes more of a mystery to me the longer I work in this field, and the more I meet and work with high-caliber female advisers.
Mindy Diamond Quoted – By Thomas Coyle, Financial Advisor IQ – Last month, UBS Financial Services, the U.S. wealth management arm of the Swiss megabank, published in its latest ADV filing with the SEC a change to its payout schedule for distinct financial planning services, a fact brought to light on April 23 by FA-IQ sister publication Gatekeeper IQ. The whole thing might seem straightforward enough, but industry experts put very different colors on it…Under the old system, UBS advisors who charged clients for financial plans separately from investment plans could get a split of “grid” — which can range from about 30% to about 60%, depending on variables including size of account and overall productivity — plus 3% for expenses. Now, financial planning services separately billable at more than $1,000 trigger a 50-50 split between the firm and the advisor, who can claim an additional 15% for expenses, up to $25,000 a year.
Mindy Diamond Quoted, Investment News – If you haven’t had to fill any vacancies in a while, your next job posting may bring a rude awakening. Recruiting and hiring experienced client-facing advisors has become very difficult, with demand high and supply low, say a number of executive search specialists.
LPL, Raymond James and TD data – and Walt Bettinger, Mike Durbin comments reveal rotten first quarter for breakaways
Mindy Diamond Quoted – By Lisa Shidler, RIABiz – Mindy Diamond of Diamond Consultants is skeptical about LPL’s explanation for its sluggish recruitment quarter and wonders if the reasons lie more with LPL than with a hot market. “Yes, it’s true advisors are focused on clients, but they’ll still move and go to another firm. Advisors are listening and hungrier than ever before to leave,” she says. “LPL has lost its luster and it’s not necessarily the best choice out there for advisors like it used to be years ago. I’m not at all surprised by LPL’s numbers.”
Mindy Diamond Quoted, OnWallStreet – Would Alex Rodriguez have landed his unprecedented $275 million contract with the Yankees without super-agent Scott Boras guiding him along the way? Would Vice President Joseph Biden think about running for President without trusted advisors by his side?
By Mindy Diamond, WealthManagement.com – For years, I have been called upon to put to rest questions about the value of changing firms. Some of the myths most commonly heard have been about the wirehouse and the independent channels. In 2004, when I wrote my first “Of Myths and Moving” column, total transition deals maxed at 120 percent of trailing 12-month production, and there were virtually no independent options for top advisors. Given the recent changes across the industry, it seemed a good time to revisit industry myths—both new and old.
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