Barbara Herman Quoted
By Miriam Rozen
Wirehouse Wells Fargo recently unveiled the identities of the first two advisors to join its new RIA channel. Both were already advisors within the Wells Fargo organization. But questions remain as to whether this new channel will have broad appeal to broker-dealers looking to move to the RIA model.
Cannibalization concerns are not entirely unfounded, says Barbara Herman, a senior vice president with New York City-based recruiting firm Diamond Consultants.
But that may not be an unintended consequence, Herman says. For WFA, the creation of the new RIA channel “clearly was part of a defensive move,” and “partly a measure to stave off attrition,” Herman says.
But Herman also argues, “I don’t think it’s a stretch to believe that the new channel will attract advisors from outside firms.”
