Signs of stability, finally, at Wells Fargo Advisors?

Signs of stability, finally, at Wells Fargo Advisors?
Annualized revenue per financial adviser increased at Wells Fargo Advisors, according to second-quarter earnings, even though the market tanked during the first half of this year.
JUL 15, 2022

The net head count of financial advisers at Wells Fargo Advisors, which has seen thousands of financial advisers leave for competitors or retire since the 2016 scandals at parent bank Wells Fargo & Co., showed signs of stabilizing during the second quarter, with a net decrease of 66, or less than 1%, when compared to the end of March.

At the end of June, Wells Fargo Advisors reported a total of 12,184 financial advisers, compared to 12,250 three months earlier, according to the firm's earnings report, which was released Friday morning.

While the year-over-year total of financial advisers declined 5%, a good portion of that total can be attributed to Wells Fargo Advisors losing hundreds of financial advisers when it said last year it would no longer work with international clients, which caused many advisers to leave the firm.

While the firm is keeping mum on the total number of financial advisers it hired during the quarter, there are indications that Wells Fargo's focus on hiring more experienced financial advisers with wealthy clients is taking hold. For example, annualized revenue per financial adviser was actually slightly higher at the end of June, at $1.21 million, compared to the end of last year, when it was $1.17 million, according to the company.

That 3.6% increase in annualized revenue per adviser at Wells Fargo Advisors came at an awful time for the broad market, with the S&P 500 posting a decline of 20.6% during the first half on global economic reports of inflation, fears of a recession and consternation over Russia's invasion of Ukraine in the winter.

Change is clearly afoot at Wells Fargo Advisors, but how big an impact new executives and changes in the firm's practices have on financial advisers remains to be seen. In May, Jim Hays, the head of Wells Fargo Advisors, said that he was retiring. Weeks later, David Kowach, who headed Wells Fargo Advisors until 2019 and was Hays' predecessor, also announced his retirement. Most recently, he was “head of affluent” at Wells Fargo, according to his LinkedIn page.

Sol Gindi, a veteran of JPMorgan Chase, replaced Hays as head of Wells Fargo Advisors and head of the Wealth & Investment Management Client Relationship Group. In another measure to focus on its independent brokerage operations, the firm last month said it was rolling out a new, special bonus for current Wells Fargo advisers who are employees and want to move to its independent contractor brokerage, Wells Fargo Advisors Financial Network, or FiNet.

"We had our best recruiting quarter since 2016," a company spokesperson said, although she declined to give specific data. "We have more than doubled the number of $1 million-and-more financial adviser producers year-over-year and have made strong headway in all of our channels."

"Improved hiring is driven by our ongoing focus on a strong recruiting pipeline, and an increased focus by the new management team on growing across all channels," the spokesperson added.

Latest News

Farther debuts AI investment proposal tool for advisors to win clients
Farther debuts AI investment proposal tool for advisors to win clients

"Im glad to see that from a regulatory perspective, we're going to get the ability to show we're responsible [...] we'll have a little bit more freedom to innovate," Farther co-founder Brad Genser told InvestmentNews.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

Are you optimally efficient?
Are you optimally efficient?

Taking a systematic approach to three key practice areas can help advisors gain confidence, get back time, and increase their opportunities.

Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida
Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida

Meanwhile, Osaic lures a high-net-worth advisor from Commonwealth in the Pacific Northwest.

Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B
Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B

The deals, which include its first stake in Ohio, push the national women-led firm up to $47 billion in assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

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.