Danny Sarch

On Recruiting

Veteran brokerage recruiter Danny Sarch offers his inside, candid point-of-view on the industry in this exclusive InvestmentNews blog.

Oct 21, 2015, 7:01 AM EST

What's ahead for the broker recruiting protocol in an age of generational transition?

By Danny Sarch

In 2004, Merrill Lynch, UBS PaineWebber and Smith Barney were the founding signatories of a document called the Protocol for Broker Recruiting. Prior to 2004, brokers who departed from the big firms found themselves subject to temporary restraining orders and lawsuits that attempted to prevent them from talking to their clients. The protocol established a methodology for a broker to depart which, if followed, would no longer subject them to TROs or legal machinations. It also protected client privacy by forbidding brokers from copying their books ahead of time and providing the client data to their new firm without their clients' consent. (More: How a weekend client raid blew up and a brokerage battle went public)Eleven years later, the protocol remains intact. Broker movement, once covered only in industry trade publications, is now reported on by The Wall Street Journal. Successful moves from wirehouses prove again and again that... Read full post

Sep 2, 2015, 2:26 PM EST

Wirehouse recruiting numbers must be more transparent

By Danny Sarch

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


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