Mindy Diamond Quoted
By Lisa Shidler
Raymond James has executed a complicated deal that involves ponying up millions of dollars for recruiting bonuses to boost former Morgan Stanley branch managers in their effort to win back their former charges to a new company.
It is not surprising that Steward already has takers, given its niche, says Mindy Diamond, president of Diamond Consultants. “It’s somewhere between the wirehouses and independent. It’s the best of both worlds. They get a single provider in Raymond James and a solid brand name in Raymond James and a competitive payout, equity in Steward and profit sharing. They also get a commitment that Steward will buy their business when they’re ready to retire.”
Unlike traditional independents, one key difference here is the manager in place at each branch working with advisors, Diamond says. “You’re getting more freedom than at a wirehouse, but you’re a W2 employee. So, it’s really somewhere in between.”
The ideal advisor is one with $1 million in revenue, she says. Anyone with $3 million to $5 million in revenue is likely to choose another option.