It's still a seller's market for advisers

Dec 8, 2013 @ 12:00 am

Runtime: 1:42

High-water deals to recruit financial advisers are not likely to go away any time soon, according to Mindy Diamond, president and CEO of Diamond Consultants, despite some executives' predictions to the contrary.

Video Transcript

With the expansion in the independent space so more legitimate options that are competing for top talent. The more competition there is, the more it drives the adviser movement and the more advisers are in the driver seat. It's very much a seller's market leading us adviser as a key. So there will always be top deals for top talent. The only thing that could and we're watching to see that could impact the deals themselves is the regulatory environment. We're waiting to see if the SEC passes the broker disclosure rule. We're waiting to see what impact that could have on the deals overall. But there-- we have no indication that deals will come down and we expect actually they'll stay at this level. We don't expect them to increase but we don't expect them to be decreased either. I think that it's just fact that recruiting is expensive and I think that while every executive may wish that they could all wave a magic wand and not have to pay these kinds of deals. And if any one firm or two firms stopped offering them then the rest of the competition would just kill them in terms of recruiting their people. So it needs to be everybody stops or nobody stops and it's a nobody-stops-thing. So I think while it's expensive and that was really the point of the article that it is expensive. It's a fact of the industry. It's like asking somebody a business owner to sell his business without remuneration.


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