UBS is moving forward with a major training initiative aimed at bringing hundreds of next-generation advisors into its ranks, even as the firm contends with a notable decline in its advisor headcount in the Americas.
The effort also comes at a pivotal moment, as the industry at large faces both demographic and competitive pressures.
A new Barron’s report Wednesday details UBS’s new approach to advisor training, which seeks to attract and develop early-career professionals, including recent college graduates and career-switchers.
The firm’s strategy, in which it expects to add up to 500 advisors to its Wealth Advice Center for mass affluent clients, includes a revamped three-year curriculum, support to earn the CFP credentials and a focus on skills that align with the evolving needs of wealth management clients.
“The ambition is about making UBS the firm of choice for people who want to make a career in wealth management,” Len Golub, head of the Wealth Advice Center, told Barron's.
The push to bring in new talent comes against the backdrop of a shrinking advisor workforce at UBS. After warning in February that changes to its compensation plan would likely prompt departures, the firm recently reported a 3.8% year-over-year decline in its Americas advisor headcount as of the end of June.
Over the past 12 months, UBS saw a net loss of 229 advisors in the region, with its headcount dropping to 5,773 from 6,002 a year earlier. The most recent quarter alone saw a net loss of 111 advisors.
Industry observers suggest that the departures may only be beginning. “These are just the first of the defections stemming from last year’s compensation and pay changes. We’ll see many more,” said Louis Diamond, chief executive of Diamond Consultants, a recruiting firm that specializes in advisor moves. Senior management at UBS has acknowledged the likelihood of continued attrition as the firm seeks to boost pre-tax margins.
The compensation changes, which included cuts to a bonus for teams and lower pay rates for lower-producing advisors, have been met with skepticism among some in the industry. “Every time one of the big firms like UBS tinkers with the advisors’ compensation, some of them say, that’s it, that’s the last straw,” said Danny Sarch, an industry recruiter.
A report from Diamond Consultants in March predicted that UBS could see its US advisor workforce get decimated this year, making it the biggest loser in the 2025 season of the advisor recruitment wars.
“Recent compensation plan changes and subsequent comments from management about future cost-cuts were simply a step too far for many UBS advisors," it read. "We predict this will be the proverbial straw that breaks the camel’s back for many, and attrition from UBS may well exceed 10% of all US advisors.”
UBS’s efforts to recruit and train new advisors are also taking place amid broader industry challenges. According to a Cerulli report last year, approximately 38%of industry advisors are expected to retire within the next decade, intensifying the need for firms to develop rookie talent. That report notes that more than three-quarters of trainees fail to complete their initial training, with client acquisition cited as the top challenge for new advisors.
The industry’s approach to supporting next-gen talent may also be falling short in key areas. A recent JD Power survey found that wealth management firms often under-invest in tools and resources that matter to younger advisors, such as artificial intelligence, social media, and branding.
“Firms that want to attract and retain next-generation advisor talent need to rethink their investment priorities,” the JD Power survey said.
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