Advisor Switching Cools in April

Advisor Switching Cools in April

The number of advisors switching firms in April dropped 25 percent versus the number who switched in March. According to Discovery Database, 1,961 reps changed b/ds in April, compared with 2,624 in March.

The number of advisors switching firms in April dropped 25 percent versus the number who switched in March. According to Discovery Database, 1,961 reps changed b/ds in April, compared with 2,624 in March.

Over half of the advisors in motion are wirehouse advisors. But they’re not all abandoning the full-service Wall Street model for independence—49 percent of the wirehouse advisors who switched simply jumped to another wirehouse.“The movement out of the wirehouse channel is mostly by advisors producing under $500,000,” says Alois Pirker, senior analyst at the Aite Group. “Those are advisors who didn’t receive retention bonuses, but know they’re still considered high producers at other firms.”

Regional b/ds, however, are hiring the largest percentage of wirehouse reps that are breaking away from the channel. In March, regional b/ds gained 17 percent of departing wirehouse brokers while independent b/ds received 13 percent.

Among those regional b/ds having success with wirehouse recruits is Minneapolis, Minn. based RBC Wealth Management. The firm hired two teams out of Smith Barney on May 7 whose combined assets under management total $550 million.

Janney Montgomery Scott hired Michael Strochlic, a $1.1 million producer in Garden City, NY, from Wachovia. The firm also hired advisors from Smith Barney and Merrill Lynch this month with combined assets over $340 million.

Year-to-date through May 1, Raymond James and Associates (Raymond James’s employee division) hired 96 FAs from wirehouses totaling $45 million in production and $5.7 billion in assets.

Total Reps = 1,961 Source: Discovery Database

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