The Competition to Recruit Financial Advisors Is as Intense as Ever. Oh, and so Is the Bragging

Independent finacial advisors are taking more market share. According to Tiburon Strategic Advisors (citing Envestnet and HighTower research --- as well as Tiburon's own research), IBD-affiliated FAs now account for 42% of the FA population. Bank and insurance companies account for 31%; wirehouse and regionals account for 27%.

In 2005, the wirehouse/regional distribution channel 38%; banks and insurance companies 32% and IBD FAs accounted for 30%. In short, IBDs are recruiting more and more FAs. Is it because the model is better? Could be, but, as the industry is well aware, wirehouses have been shedding low-producing FAs for the past few years in particular.

And I love to receive press releases in which broker/dealers announce scoring a big whale. Here are two, the first is from Merrill Lynch and the second is from Hilliard Lyons.  

Here is Merrill's issued this morning: "Merrill Lynch Wealth Management has hired Rebecca Rothstein as a Managing Director and Private Wealth Advisor in our Beverly Hills, California, Private Banking and Investments Group (PBIG) office.  Rebecca and her 11-member team manage approximately $2.5 billion in assets and joined the firm on Friday October 19th.  They had been at Morgan Stanley since 1999 and Alex Brown & Sons for 10 years prior to that.

"Rebecca cited Bank of America’s broad lending platform and the strong capabilities of its private banking group as the reasons she joined the firm, noting strong client demand for these offerings. 

"Among the 11 people on her team, she works with Managing Director and partner Mark Varo and two of her four sons – Evan and David Rothstein. 

"The team has been togetherfor 17 years, and their practice focuses on estate, tax, and financial planning, especially in the entertainment and real estate industries.  Rebecca also works extensively with corporate officers and directors on liquidity and diversification strategies for concentrated positions. 

"Frequently named to Barron’s list of America’s Top 100 Women Advisors (#2  for the last 3 years and #1 in 2009, 2007, and 2005), she was also named to the Barron’s list of America’s Top Advisors (men and women) every year since the listing was created.

"In addition to her work as a private wealth advisor, Ms. Rothstein sits on five charitable boards and is a founding board member and chairman of the board of Teen Cancer America, an organization championed by rock legends Roger Daltrey and Pete Townshend dedicated to improving the lives of teens and young adults with cancer.

"A Canadian from Winnipeg who grew up in Fair Haven, New Jersey, Ms. Rothstein and her husband of 36 years live in Beverly Hills."

Here is a release upon Hillard Lyons score (issued on Friday): "

Hilliard Lyons Adds $300 Million Advisor in Indiana

EVANSVILLE, Ind. – Hilliard Lyons today announced that Financial Consultant Robert G. Bernardin has joined the firm’s Evansville office as a Senior Vice President.

Bernardin has 30 years of industry experience, most recently with Morgan Stanley where he oversaw client assets of more than $300 million.

Hilliard Lyons CEO Jim Allen said, “I’ve known Robert for more than 30 years and I have great respect for his integrity and professionalism.”

Robert Bernardin can be reached at (812) 426-1481 or (888) 426-1481 or at the firm’s Evansville office at 110 Main Street, Evansville.

Hilliard Lyons is a member of the New York Stock Exchange, the Financial Industry Regulatory Authority (FINRA)and the Securities Investors Protection Corp. (SIPC).

Hilliard Lyons focuses on the creation, preservation and distribution of its clients’ wealth. The firm specializes in planning issues that include retirement, business succession, trust and estate planning and education funding.  Hilliard Lyons offers comprehensive financial services and advice, including professionally managed accounts, as well as a broad menu of investment vehicles, such as stocks, bonds, options, mutual funds, annuities and insurance to facilitate the financial strategies recommended.

Founded in Louisville, Kentucky in 1854, the firm has a long and distinguished history in the American marketplace. Hilliard Lyons operates 70 branches in 12 states. The firm’s Financial Consultants use original and purchased research tools and state-of-the-art software – coupled with their own knowledge and experience – to advise their clients through the financial challenges that life brings.

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