Finding greater advisor satisfaction at the wirehouses, Cogent study concludes the breakaway surge is over
For the first time in history, the majority of advisory compensation comes from fees; plus 9 other findings from one of the year's most ambitious surveys
Jeff Spears
Sentiment statistics are a volatile as the market! I’m not surprised to see Advisor satisfaction increase in 2010 over 2009. Salespeople are an emotional group.
A few other statistics that should be emphasized are that most of the breakaway advisors over the last three years were forced to break away. The large advisors that broke away to form Constellation Wealth, Luminous and Presidio Financial Partners broke away before the financial crisis.
My belief is that the next break away movement will be driven by clients not by Advisors. If their clients leave advisors will have little choice but to follow then to the most client friendly business model which is an independent/uncolflicted wealth management firm.
Fred St Laurent
“Today 81% of Regional advisors and 49% of national wirehouse advisors report that they are very satisfied with their current employer, says the study.”
What percentage of the brokers in the survey had actually moved in the last 1-2 years?
I would think the numbers would be different if one excluded Advisors who had made a recent move. Those on a “honeymoon” raising a full glass on Kool-Aid, if included in the survey, might dilute the results.
Just a quick observation. Maybe this was considered.
Stephen Winks
Let’s not be myopic
Making advice safe and easy to execute requires scale which is beyond the reach of the individual practitioner. Everyone assumes the brokerage industry will fight regulatory reform and modernity which is clearily the case. But in a post reform environment, the tables might be turned as the wirehouses have scale and can buy sophistication in being responsive to the new unfolding business environment. If the brokerage industry properly resources its brokers so advice is scalable, safe and easy to execute—it will reverse the breakaway broker trend and will aggressively attract RIAs to faster, better, cheaper, large scale institutionalized support for fiduciary standing probably offered through an independent or custody affiliate.
SCW
Related Moves
The upper RIA echelon mass-exit is now at 25 execs and counting -- for 25 'reasons' -- but it's hardly a coincidence, analysts say
Burnout and EBITDA weigh on CEO-types as never-ending exits claim Ron Carson, Aaron Klein, Bernie Clark, Rudy Adolf, Bill Crager and Tim Buckley.
June 7, 2024 at 11:17 PM
Walt Bettinger discloses expiration of unknown 'pact' to explain to Schwab investors why Bernie Clark, Peter Crawford and Joe Martinetto all chose to exit at once
The 'sort of informal' deal was struck in 2019, but never revealed to shareholders during the merger transition, until the departures were announced -- in one press release -- this month.
May 25, 2024 at 2:45 AM
Cetera hiring Mike Durbin as CEO -- overseeing its existing 'CEO' -- completes Genstar's stellar HR week after it put Charles Goldman atop Orion's board -- with 'exponential' growth in mind for the 'middle market' companies
The Los Angeles broker-dealer nabbed the Fidelity legend to take its $118-billion AUM and 8,000 advisors higher, just as Orion -- also majority owned by Genstar -- makes a similar move.
May 18, 2023 at 1:46 AM
Infamous stockbroker resolves civil suit stemming from violent tirade -- the apparent final chapter in an incident that went viral and forever branded him the 'Fairfield Smoothie Guy'
Broker Jim Iannazzo went all out with high-powered attorneys and slick Las Vegas crisis pr team to limit the damage from his actions, but whether he can ever live down the incident remains to be seen.
September 1, 2022 at 5:11 AM
See more related moves
Market Strategies International
Top Executive: Rob Stone