Finding greater advisor satisfaction at the wirehouses, Cogent study concludes the breakaway surge is over
For the first time in history, the majority of advisory compensation comes from fees; plus 9 other findings from one of the year's most ambitious surveys
Jeff Spears
Sentiment statistics are a volatile as the market! I’m not surprised to see Advisor satisfaction increase in 2010 over 2009. Salespeople are an emotional group.
A few other statistics that should be emphasized are that most of the breakaway advisors over the last three years were forced to break away. The large advisors that broke away to form Constellation Wealth, Luminous and Presidio Financial Partners broke away before the financial crisis.
My belief is that the next break away movement will be driven by clients not by Advisors. If their clients leave advisors will have little choice but to follow then to the most client friendly business model which is an independent/uncolflicted wealth management firm.
Fred St Laurent
“Today 81% of Regional advisors and 49% of national wirehouse advisors report that they are very satisfied with their current employer, says the study.”
What percentage of the brokers in the survey had actually moved in the last 1-2 years?
I would think the numbers would be different if one excluded Advisors who had made a recent move. Those on a “honeymoon” raising a full glass on Kool-Aid, if included in the survey, might dilute the results.
Just a quick observation. Maybe this was considered.
Stephen Winks
Let’s not be myopic
Making advice safe and easy to execute requires scale which is beyond the reach of the individual practitioner. Everyone assumes the brokerage industry will fight regulatory reform and modernity which is clearily the case. But in a post reform environment, the tables might be turned as the wirehouses have scale and can buy sophistication in being responsive to the new unfolding business environment. If the brokerage industry properly resources its brokers so advice is scalable, safe and easy to execute—it will reverse the breakaway broker trend and will aggressively attract RIAs to faster, better, cheaper, large scale institutionalized support for fiduciary standing probably offered through an independent or custody affiliate.
SCW
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