Veteran brokerage recruiter Danny Sarch offers his inside, candid point-of-view on the industry in this exclusive InvestmentNews blog.
Sep 2, 2015, 2:26 PM EST
Every quarter, the wealth management industry reports earnings. The media tends to focus on a handful of key metrics, including the number of financial advisers at individual firms. Firms are expected to grow, so a smaller number of advisers, compared with the previous quarter, is “bad” while a larger number is “good.” Enough deception. It's time for transparency.That's right, I believe wirehouses fudge their numbers every quarter. To anybody observing from the outside, any registered person can be deemed an “adviser.” Do you know the name of a registered sales assistant or a senior manager at a brokerage firm? Punch their names into Financial Industry Regulatory Authority Inc.'s BrokerCheck database and they look exactly the same as a real adviser. This became apparent to me several years ago when an adviser at Morgan Stanley showed me his production report. The report clearly ranked him according... Read full post