Displaying items by tag: independents
Independents are Boosting Recruitment
(New York)
One of the big developments in the wealth management industry right now is the big increase in recruitment spending by large independent broker-dealers. Even as wirehouses are cutting back on spending, big independents like LPL, Commonwealth, and Raymond James, are spending big on new talent. The payouts are usually being given in the form of forgivable loans. The spending on such payouts has been large, with LPL increasing its budgets for such items to $159.9m in 2017, 17% higher than the year prior.
FINSUM: So while wirehouses have been cutting back, independents have been heating up.
Independents are Taking Billions from Wirehouses
(New York)
If you need some more information to understand why the big wirehouses are trying to pull out of the broker protocol, this is it. In 2017, independent broker-dealers snagged 118 wirehouse teams and took almost $28 bn in AUM, up 23% from 2016. The success comes as independents have closed the technology and product gaps with larger rivals, and IPO allotments have become scarce at wirehouses.
FINSUM: Wirehouses are generally growing fearful and are trying to throw up hurdles that keep brokers from breaking away. Hence the pullout from the broker protocol.