Louis Diamond Quoted – By Hugh Son, Bloomberg – Morgan Stanley, the world’s biggest brokerage by adviser count, has dropped out of an industry accord that allows financial advisers to defect to competitors without getting sued by their former employers. “I’d be shocked if Merrill and UBS don’t follow suit,” said Louis Diamond of Diamond Consultants LLC. “Those are the firms that have the most to lose with this deal after they’ve all said they’re not recruiting as much.”
Louis Diamond Quoted – Barron’s – Recruiting and attrition have slowed down at Morgan Stanley as the firm, like other big brokerages, has de-emphasized big signing bonuses, reports InvestmentNews.
Louis Diamond Quoted – By Bruce Kelly, InvestmentNews – The decision by three of the four wirehouses to reduce their reliance on signing bonuses to recruit brokers from rival firms appears to be paying off. While recruiting may be slowing down at large firms for the moment, expect to see a flurry of recruiting deals as the end of the year draws nearer, said Louis Diamond, vice president and senior consultant at Diamond Consultants, an industry recruiter.
Louis Diamond Quoted – By Bruce Kelly, Investment News – At one time, major brokerage houses ran large, expensive training programs for thousands of young brokers, and now it looks as if they are about to return to that model.
Howard Diamond Quoted – By Ben McLannahan, Financial Times – An age-old recruitment game on Wall Street it goes something like this. Broker A hires a team of financial advisers from Broker B. Broker A agrees some huge signing bonus: perhaps 21⁄2 times their gross fees and commissions over the previous 12 months, half delivered up front as a cash loan, forgivable over as many as nine years, with the rest contingent on hitting asset or revenue targets over that period. A few months later Broker B strikes back at Broker A, offering a package worth three times the gross revenues. And so on.
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 Andrew Welsch, OnWallStreet – Former Barclays advisor James Fitzgerald joined Morgan in New York. While at the British firm he generated more than $1 million in annual production and oversaw $960 million in client assets, according to Morgan. He reports to Complex Manager Ben Firestein.
Mindy Diamond Quoted, ThinkAdvisor – Industry experts are divided on the impact of this shift on advisor retention and recruiting. Morgan Stanley is moving to defer more compensation for its advisors in 2015. But just how financial advisors will react to the shift is debatable, experts say.
Mindy Diamond Quoted – By Michael Wursthorn, OnWallStreet – Morgan Stanley is going to make its financial advisers wait longer to pocket some of their pay.
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