wirehouses This is a topic that many people are looking for. newyorkcityvoices.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, newyorkcityvoices.org would like to introduce to you Industry Update: Are the Wirehouses Getting Ready to Give Independence a Run for the Money this Yea. Following along are instructions in the video below:
“To the latest episode of our podcast series for advisors. Considering. The independent space. Today today s episode is an industry.
Update or the wire house is getting ready to independence a run for the money this year. I m mindi diamond and this is mindy diamond on independence his podcast is available on our website diamond consultants. Calm and on adviser hub calm as well as apple podcasts and other major podcast platforms and if you re listening to this series on the apple podcast app be sure to leave a star rating and review it serves as a guide to us as well as your colleagues in the wealth management industry may be searching for valuable content to tune in to morgan stanley s thirteen billion dollar acquisition of e trade financial was this month s news in the wealth management industry and while i m not here to comment on whether it s a good deal or not i do want to share what i think is more important to the advisor community at large and that is the message. It sends and the intent that it signals let me start by taking a step back to something i explored in an article.
I published last week. We believe there s a brewing resurgence at the wire houses in terms of recruiting for some time now. Wire houses have largely been persona non grata amongst a large swath of advisors. That is that advisors assume.
There are no real differences between the firms. That they re all about bureaucracy limitations and a lack of control that general sense of disenfranchisement amongst advisors. And the fact that the wire house is for the most part and certainly with the exception of wells took themselves out of the recruiting game for the past two years. So many advisors chose to stay put by default and not by choice.
While others moved away from the traditional brokerage world to the regional firms to boutiques. Like rockefeller capital management or first republic private wealth management or to independence with the exception of very selectively recruiting high profile teams. The wire houses have been largely not playing to win the recruiting turf battle. But the pull back on recruiting wasn t sustainable.
We knew it all along that it was just a matter of time before the wire house has stepped back into the ring in a big way. The firms need to make up for not electrician. The loss of some of their best teams. And retiring advisors they need to continue to scale by growing their top advisor ranks for advisors.
The wire houses decision to get back in the game is a good thing why because everyone wins when there is choice and because many teams just don t want independence they feel they and their clients are better served at a big firm. It s an environment. They re accustomed to with an all under one roof access to anything and everything a client needs from a wealth management perspective. So what are the signals that the firms are sending that s indicating their renewed interest in recruiting let s take ubs for example.
It was reported that in recent months. Ubs. Executives and managers have recommitted themselves to support the us wealth business and the firm has demonstrated that commitment with last month hiring of a team of career merrill advisors in charlotte north carolina. Who were producing about 16 million dollars in revenue last year and just a few days ago.
Ubs snagged a six billion dollar team from goldman sachs in boston. A team that was touted as one of the largest in the country. Under the age of 50. Morgan stanley has also revved up recruiting bonuses.
In recent months. And named veteran complex. Manager. Ben fierstein to a new position as head of national recruiting and morgan just recruited a team generating 54.
Million in revenue with some seven hundred eighty million dollars in assets and the firm reports that their pipeline is chock full of top advisor talent on the other hand merrill remains a mystery when it comes to recruiting their efforts seem to be most focused on recruiting younger salaried advisors and at the same time. They just transitioned. Almost their entire support network to salary as well efforts. Which are pushing many really good people out the door and ultimately infuriating.
The top advisors who relied heavily upon them going back to morgan. We think they ve made the strongest statement of intent yet by their aqua of e trade financial. Many feel that this move was in direct response to merrill edge or merrill s online brokerage platform. It represents merrill s fastest growing business segments and fertile ground for recruiting young fas and clients.
The e trade deal positions morgan favorably from many angles first off it makes morgan a three trillion dollar firm it gives them access to state of the art digital banking capabilities and the addition of the e trade platform gives advisors a way to connect with younger clients via a self directed option but mostly from where i sit. It says that morgan is all in on wealth management with its global wealth management business going from contributing 51 percent of the firm s bottom line to a whopping 57 for the most part advisors are responding enthusiastically as one multimillion dollar. Advisor told. Me i have at least four to five multi generational.
Clients. Now who have wealth management stock plan business and self directed needs. I don t feel that having a self directed option will cannibalize my business in any way. I think instead.
It s about giving clients. What they want and need from where i sit this acquisition could be the biggest differentiator amongst. The big firms and exactly what morgan has been in search of for a long time the acquisition of etrade. Gives morgan a real leg up in the recruiting wars.
A legit alternative to merrill. Ubs and wells see that s the thing for the longest time advisors were leaving the wire house world because the firm s all felt the same to them virtually interchangeable. So if you were frustrated with merrill you presumed. It was more of the same elsewhere.
But this deal says that morgan is different it says that wealth management is more important because it s a wealth management firm that owns a bank and not the other way around. And that is a very important distinction any trade stock plan clients in those clients graduate from the self directed option have the potential of serving as a referral source to advisors. But here s the deal. We re watching closely to make sure that morgan leaves.
The choice of when and how to move clients to a self directed option to the advisors and clients themselves not to mandate. It which was a mistake that merrill made in forcing advisors to move clients to self directed option really infuriating advisor talent as long as morgan. Allows advisors. The autonomy.
They want to decide who and when a client moves to a self directed platform. We believe they will retain this strong advantage. So while the wire house reads surgeons may give independence a run for the money this year. Those advisors who value freedom control and ownership more than anything will still opt for the independent space in any case.
It s important to remind advisors that keeping an open mind when considering a change is critical. Because the landscape of the industry has expanded exponentially and the waterfall of options for advisors is incredibly robust. No doubt it all looks very different than it did the last time you may have looked around my best. Advice is this you only want to make this move once if at all and you want it to be right so take the time to explore in a strategic and thoughtful way thank you for listening to this industry update.
I look forward to sharing more with you in the coming weeks. As well as welcoming our rust or a very exciting. Thought leaders to the show. I encourage you to visit our website diamond dash.
Consultants. Comm and click on the tools and resources link for more valuable content. You ll also find a link to subscribe for regular updates to this series. And if you re not a recipient of our weekly email perspectives for advisors click on the blog link to browse.
Recent articles. Feel free to email or call. Me. If you have specific questions.
I can be reached at 9 08. Eight seven nine one zero zero two or m. Diamond at diamond consultants. Dot com.
Please note that all our requests are handled with complete discretion and confidentiality thank you for listening. I also want to thank advisor hub for sharing this podcast with their viewers and subscribers. This is mindy diamond on independence ” ..
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