The Real Truth About Advisor Moves: What Lies Beneath the Numbers
Louis Diamond Quoted
By Mrinalini Krishna
Last year, most large broker-dealers claimed 12 months of record recruiting. This year, even though recruitment activity has slowed down a little, firms are still confident about recruitment pipelines and are gung-ho about their advisor retention. Yet high recruitment along with high retention could be confusing. Even the recruiters FA-IQ spoke with for this analysis piece are skeptical of the different metrics put out by the firms.
“When you have 14,000, or 15,000, financial advisors, if you lose 2% of advisors, that’s a ton of advisors, and a lot of assets. But [2%] doesn’t really look that bad,” says Louis Diamond, executive vice president and senior consultant at Diamond Consultants, giving an example. He says the problem is especially visible in wirehouses.