Why Fewer But Bigger Advisors Are Switching Firms This Year
August 14, 2019
Louis Diamond Quoted
By Mrinalini Krishna
Big teams with long tenures are leaving big-name shops, according to experts who say wirehouses continued to lose advisors in the second quarter of 2019.
Recruiters and other industry watchers say that for the first half of the year, recruitment activity slowed for the wealth management industry but attrition of larger teams from wirehouses was evident.
“There’s been some of the largest-ever transitions away from wirehouses this year. What’s notable is most of those groups were lifers at their firm. They weren’t people that jumped around a bunch. They had some of the best reputations. And kind of what their move means that it’s more symbolic. The sheer scale and sizes of groups is pretty remarkable,” says Louis Diamond, executive vice president and senior consultant at Diamond Consultants. “I think, overall, the average transition is probably larger than in years past, although the number of moves is seemingly a bit down.”