After fast start, wirehouse recruiting hits a wall

But break in lull expected after tax season winds up; 'fingers on the trigger'
APR 11, 2013
By  AOSTERLAND
The pace of adviser movement into and out of wirehouses picked up at the beginning of this year, compared with a slow 2012, recruiters report. But advisers now appear to be in lock-down mode in the lead-up to tax-filing season. “There's a lull in the recruiting market now because we're within a month of the tax-filing deadline,” said Frank LaRosa, chief executive of Elite Recruiting and Consulting. With investors needing documentation from their brokerage firms to file their tax returns, an adviser's moving prior to the filing deadline could cause some headaches for clients. “[Brokers] don't want to give [clients] another reason not to follow them to a new firm,” Mr. LaRosa said.

NOT TILL AFTER APRIL 15

Danny Sarch, president of Leitner Sarch Consultants Ltd., agrees that the looming tax deadline is likely keeping on the sidelines any advisers contemplating a move. “Anytime an adviser moves, they're putting their clients through a lot, and it's awkward for them to make the move when clients have a lot of stuff going on.” Mr. LaRosa is hopeful that the pace of movement in the industry will pick up after April 15. “A lot of big teams have their fingers on the trigger,” he said. “I think we'll see a lot of movement in May.” The week of Memorial Day is traditionally an active one for advisers making moves to new firms. Another catalyst this year could be the recruiting bonus disclosure rule proposed by the Financial Industry Regulatory Authority Inc. If the rule is passed, it probably will be implemented next year. That might convince some advisers considering a move to act sooner rather than later. “I still question whether [the bonus disclosure] will affect recruiting deals, but some advisers may want to move before it hits,” Mr. Sarch said.

Latest News

Judge OKs more than $90 million in settlement money for GWG investors
Judge OKs more than $90 million in settlement money for GWG investors

Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.

Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs
Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs

Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.

Retirement uncertainty cuts across generations: Transamerica
Retirement uncertainty cuts across generations: Transamerica

National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.

Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future
Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future

While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.

Raymond James continues recruitment run with UBS, Morgan Stanley teams
Raymond James continues recruitment run with UBS, Morgan Stanley teams

A father-son pair has joined the firm's independent arm in Utah, while a quartet of planning advisors strengthen its employee channel in Louisiana.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave