Nearly 9,700 Series 7 Advisors Changed Firms in 2023, Report Says

Nearly 9,700 experienced advisors who hold Series 7 brokerage licenses changed firms in 2023, a 7.5% increase over 2022—a gain that came despite historically transition-dampening headwinds such as the regional banking crisis early in the year and multiple geopolitical conflicts, said Diamond Consultants in its 2023 Advisor Transition report.

While there was plenty of movement from one channel to another, such as an advisor moving from a regional broker-dealer to an independent broker-dealer, more common were the intra-channel transitions, such as from one wirehouse to another, according to Jason Diamond, executive vice president and the author of the Morristown, N.J.-based firm’s report.

For example, independent broker-dealers registered 7,807 head count gains and 7,244 losses, netting out to a gain of 563. But the channel also pulled 563 advisors from other channels. Regionals also gained 612 reps and lost 571, netting out to a gain of 41.

Boutique and wirehouse firms suffered net losses, as some of their advisors left for independents and regionals, the report found. Boutiques gained 99 brokers but lost 355 for a net loss of 256, and wirehouses gained 1,156 but lost 1,504 for a net loss of 348.

The top recruiters were Morgan Stanley in the wirehouse segment with 445 advisor hires, Raymond James & Associates in the regional firm category with 159 hires, and LPL Financial among independents with 1,526 hires.

“We view the advisor as the real winner of 2023 because there were more legitimate choices than ever before,” Diamond wrote in the report.