Tax season keeping wirehouse reps in their seats

Recruitment hits lull ahead of clients' filing; 'lot of movement in May'
APR 18, 2013
By  AOSTERLAND
The pace of adviser movement into and out of the wirehouses picked up at the beginning of this year compared to a slow 2012, say recruiters. But advisers now appear to be in lock-down mode in the lead up to the 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 moving prior to the filing deadline could cause some headaches for clients. “Brokers don't want to move now for fear of creating problems for their clients. They don't want to give them another reason not to follow them to a new firm,” said Mr. LaRosa. Danny Sarch, President of Leitner Sarch Consultants, agrees that the looming tax deadline is likely keeping advisers contemplating a move on the sidelines for now. “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 is poised to pick up after April 15. “A lot of big teams have their fingers on the trigger,” said Mr. LaRosa. “I think we'll see a lot of movement in May.” The Memorial Day weekend is traditionally an active week for advisers making moves to new firms. Another catalyst this year could be the recruiting bonus disclosure rule proposed by the Financial Regulatory Authority. If the rule is passed it would probably be implemented next year. That might convince some want-away advisers to move sooner rather than later. “Some people are expecting a flurry of movement if the bonus disclosure goes through,” said Mr. Sarch. “I still question whether it will affect recruiting deals, but some advisers may want to move before it hits.”

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

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.