By Mindy Diamond – For a long time now, the big firms have made no secret of their desire to reprice the market relative to recruiting. The DoL Rule gave them just the opportunity to do so, and now 3 of the 4 wirehouses have boldly announced plans to significantly reduce their recruiting efforts—at least for the near term.
By Mindy Diamond – WealthManagement.com – Recruiting deals have taken a big hit, dropping to levels we haven’t seen in years. So advisors who are considering a move are left with an uncomfortable decision: Do I stay and wait out the storm or leave now?
Mindy Diamond Quoted – By Michael Wursthorn, The Wall Street Journal – Merrill Lynch will temporarily stop paying top dollar to recruit experienced brokers, according to a person familiar with the matter, the latest brokerage to make changes to how it compensates brokers poached from rivals. “For a long time all the [brokerages] felt the price of recruiting had gotten out of hand,” said Mindy Diamond, president and founder of Diamond Consultants, a Morristown, N. J.-based recruiting firm for financial advisers that does some business with Merrill. “It remains to be seen if it’s a sound strategy.”
Mindy Diamond Quoted – By Andrew Welsch, OnWallStreet – Merrill Lynch plans to scale back from adviser recruiting, mirroring a move that UBS took last year and creating an opening for smaller rivals to gain an edge in the competition for top talent. UBS has not completely pulled back from recruiting; it still hires top talent, but selectively. It isn’t clear if Wells Fargo and Morgan Stanley will copy Merrill’s example.
By Louis Diamond – Second of a series on advisor transition and transition deals: Analyzing transition packages attached to big firm moves and the components of these deals to help answer a burning question for many advisors: “What is the best deal on the Street?”
By Mindy Diamond – The evolution of the landscape has provided advisors with more choice than ever to build the business they envision, yet many are still looking for a utopian model that likely doesn’t exist. So do you hold out and wait for perfection—learning to live with whatever shortcomings that exist in your current circumstance? Or, are you willing to be flexible in your expectations and choose a better, albeit imperfect, solution?
By Mindy Diamond – With record transition packages being offered to incent the changing of firms, advisors are moving at a record pace. Certainly, it is tempting to be wooed by these crazy deals that have the potential to turn someone with an average net worth into a wealthy man or woman. But, when the motivation for such a move is being driven solely by personal financial gain, the long-range outcome can be disastrous. Here’s why.
By Andrew Shilling, Financial Planning – An independent financial advisory firm with more than $108 million in client assets has joined Commonwealth Financial Network, the firm said. James F. King, Jr., and his team at the Manalapan, N.J.-based King Financial Network made the move to the privately held independent broker/dealer, Commonwealth Financial said.
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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