Ameriprise Financial Inc. said on Tuesday morning it had recruited 42 experienced financial advisers for the three months ending in June, or close to half its typical target of about 80 per quarter.
Ameriprise CEO James Cracchiolo pointed to a "confluence" of reasons for the adviser recruiting slowdown in a call with analysts Tuesday to discuss second quarter earnings, including questions about the reopening of businesses and offices in this period of the Covid-19 pandemic and the stock market's performance.
"As we went through the quarter, we didn’t expect it to slow down as much," Cracchiolo said. He was optimistic, however, about Ameriprise bringing in new advisers for the rest of the year.
"Right now, our pipeline looks really good, and we feel like we’ll get back to those numbers," he said, referring to prior quarters in which the firm had recruited closer to 80 financial advisers.
"Is there a competitive market?" Cracchiolo asked. "Absolutely. But the second quarter, I attribute to a confluence of factors."
When the pandemic hit in the first half of 2020, broker and financial adviser recruiting slowed down considerably, as businesses shut down face-to-face meetings and got virtual and online technology up to speed. It gained momentum in the second half of the year but remains to be seen how broker and financial moves will shake out in 2021.
According to InvestmentNews’ Advisers on the Move Database, which tracks registered reps and advisers as they transition between firms, total moves of experienced advisers fell 24% in 2020. That calculation includes advisers who transitioned as part of a merger or an acquisition, but excludes moves between related firms.
Meanwhile, Ameriprise reported 10,047 financial advisers across its platform at the end of June, compared to 9,894 a year earlier, an increase of 153 advisers or 1.5%.
Revenue per adviser was $197,000 for the second quarter, an increase of 27% when compared to 12 months earlier, when the firm reported per adviser revenue of $155,000.
Total client assets in the wealth management segment increased 28% to $807 billion, with total client asset flows of $9.5 billion in the second quarter.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.
