15 recruiting trends to watch next year
To say the least, 2017 was eventful when it comes to recruiting advisors. The Broker Protocol began to unravel, and the Department of Labor’s fiduciary rule was partially implemented. Plenty of questions loom over both these issues in 2018.
Meanwhile, a massive acquisition may cement a new leading firm’s headcount atop all others’ next year, while the changes in another part of the industry could also upset the traditional balance of power between regional firms and wirehouses.
For a detailed listing of recent hires, check the latest edition of
Additional reporting by Lee Conrad, Charles Paikert, Ann Marsh and Andrew Welsch
1. LPL’s massive acquisition touches off a recruiting fight
The deal
LPL has planned the transition of NPH’s assets and advisors to its platform
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2. Will the Broker Protocol collapse in 2018?
"My personal prediction is that protocol will unravel,” Stifel CEO Ron Kruszewski
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3. Will the fiduciary disruption spill into 2018?
Morgan Stanley
In the IBD space, LPL CEO Dan Arnold called the DoL rule
Firms in all parts of the industry
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4. Can Wells Fargo’s recruiting efforts overcome its scandal-plagued brand issues?
Though the firm reported in October that it snapped a three-quarter
The wirehouse’s ability to recruit aggressively will be complicated by
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5. Will the industry’s diversity improve in 2018?
The CFP Board and FPA
The longstanding lack of diversity in wealth management is a “grave” threat, Pershing Advisor Solutions CEO Mark Tibergien said in
“Our talent doesn’t reflect the face of our community, nor does it reflect what I think is important for the continuation of the independent financial advisor movement to address as a crisis,” Tibergien said.
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6. Will RIAs meet the succession challenge?
Many firms are finding that the quality of hires they attract depends on whether or not they have a succession plan in place, and on the quality of that plan.
On the other side of the same coin, subpar hires can suppress a firm's value and dim its succession prospects decades down the line.
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7. A missing component in the bank channel
There are a few exceptions. U.S. Bank
But as a group, the bank channel still lags in this respect.
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8. How tech will help recruiting while reducing the number of advisors
The number of advisors has dropped to roughly 301,000, down 11% from its peak in 2005, according
Firms like Morgan Stanley and Cetera Financial Group have unveiled such innovations, including Cetera’s
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9. Which breakaway brokers will the platforms add next?
HighTower's
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10. Can IBDs win and retain breakaway RIA advisors?
Major IBD players like LPL and Cetera are betting that tech and compliance support will help them retain so-called hybrid advisors, according
LPL recently
“These changes make the administrative and compliance services LPL provides through our corporate RIA platform more valuable than ever,” LPL Managing Director for National Sales and Consulting Andy Kalbaugh told advisors.
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11. Coming off a banner year for recruiting, can the regional BDs keep up the momentum in 2018?
RBC said it
While advisor moves to regionals hit new highs this year, the factors driving that momentum are not likely to dissipate any time soon.
“Regional firms have become very attractive places for advisors,” says headhunter Mark Elzweig. “Their environments are smaller and more flexible. And most every wirehouse advisor knows someone at a regional firm that is happy.”
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12. How will the industry leverage college planning programs?
The question remains whether the industry is doing enough to tap this incoming crop, however.
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13. What will be the next IBD consolidation?
Advisor Group’s Royal Alliance Associates ushered in
Both firms also grew this year
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14. Which way will RIA M&A deal flow go?
"Acquisitions allow me to partner with top advisor talent and hire more qualified people because now I have greater resources," says Brent Brodeski, CEO of Rockford, Ill.-based Savant Capital Management. "For the same amount of time and energy that it takes to open a new office, I come out ahead if I buy one."
It should come as no surprise then, that 2017 is on track to
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15. Musical chairs in the bank channel
And that’s not likely to stop anytime soon. To be sure, the TPMs also spent a number of years on a consolidation spree, but two industry consultants say that pathway to growth
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