Displaying items by tag: recruiting

Advisors are constantly asking where the wealth management industry is headed—who’s hiring, who’s losing talent, and which models are gaining favor. In response, the Advisor Transition Report was created to fill a gap: a clear, data-driven look at advisor movement that wasn’t available anywhere else. 

The latest report uncovers five unexpected insights, including the surprising uptick in recruiting despite market highs that typically encourage advisors to stay put. It also highlights the rise of boutique and regional firms like RBC and Rockefeller, which are gaining ground thanks to competitive deals and a balance of flexibility and support. 

Even firms often labeled as “losers” in the recruiting wars, such as Merrill and Edward Jones, made meaningful hires, proving the narrative is more nuanced than headlines suggest. Ultimately, this intelligence isn’t just for those considering a move—it’s essential knowledge for any advisor aiming to future-proof their business.

Finsum: Trends are shifting in recruiting and studies like this can help advisors and BDs stay abreast of advisors needs.

LPL Financial has significantly ramped up its use of advisor loans, reporting $2.14 billion in outstanding advisor loans in 2024—a 57% jump from the prior year—as part of its aggressive strategy to recruit and retain talent. 

These forgivable loans, often used as incentives for advisors to join or stay with a firm, have become a cornerstone of LPL’s growth model. The firm’s acquisition of Atria Wealth Solutions, a broker-dealer network with 2,400 advisors and $100 billion in assets, likely contributed to the spike, as LPL aims to retain 80% of Atria’s advisors during the transition. 

LPL’s scale as a self-clearing broker-dealer gives it a cost advantage, allowing more room to offer attractive loan packages compared to smaller competitors. The company expects to complete the advisor transition from Atria by mid-2025, further consolidating its position as the industry’s largest independent brokerage.

Finsum: While this strategy does require a lot of capital it could be a way to attract new talent. 

Many advisors are questioning whether now is the right time to switch firms, especially amid market volatility. While uncertainty can make timing feel risky, waiting for the "perfect" moment is often a losing strategy.

 Market turbulence can actually create opportunities, as clients seek reassurance and may be more open to discussions about better solutions. The key factor in a move isn't timing but whether a new firm offers better resources, technology, and support for clients. 

Working with a transition consultant can ease the process by handling logistics and securing offers discreetly. 

Finsum: Ultimately, the decision to move should be driven by the right opportunity, not market conditions.

The advisor landscape is shifting, with over 9,000 advisors changing firms in 2023, particularly within the RIA sector. Many advisors employed by RIAs—often non-owners earning a percentage of revenue or salary—are seeking greater autonomy, ownership opportunities, and better compensation. 

The rise of large RIA aggregators and increasing M&A activity have contributed to advisor dissatisfaction, as firms focus on efficiency and growth at the expense of individual autonomy. 

Advisors looking to transition have several paths, including joining another RIA, moving to a wirehouse or bank, launching their own firm, or affiliating with an independent broker-dealer. Each option balances control, compensation, and operational complexity, making careful planning essential for a successful transition. 

Finsum: As the RIA industry consolidates, firms must innovate their advisor value propositions to retain talent and remain competitive.

Switching broker-dealers is a complex process, but with the right approach, it can be a transformative step for an advisor’s business.

• Legal considerations should be the first priority, as non-compete clauses and client ownership agreements can create hurdles if not addressed properly. 
• Developing a detailed transition plan at least 90 days in advance is essential, ensuring advisors understand which accounts can move, which will remain, and how client data can be organized legally. 
• Engaging staff early in the process prevents last-minute chaos and helps distribute responsibilities effectively. 
• Advisors should also consider client communication strategies, ensuring a seamless transition that reassures clients and maintains trust. 

Finsum: Ultimately, a well-executed move can enhance an advisor’s ability to serve clients while positioning their practice for long-term growth.