The total number of transitions of advisors between firms in the first quarter was down 4 percent from the previous three months, according to InvestmentNews' "Advisors on the Move" database. Similarly, the database reveals that advisor transitions are 12 percent lower so far this year than the comparable period of 2021.
Many factors affect the pace of industry recruiting, including the pandemic, work-from-home accommodations, and travel restrictions that resulted from the pandemic. In the nine quarters before the pandemic, an average of 4,570 advisors switched firms each quarter. Since then, the average has fallen to 3,893. The recent decrease in activity also coincides with a sustained period of market volatility.
Although overall recruiting activity is slow, the RIA and independent broker-dealer channels remain attractive to experienced advisors. RIAs gained 341 advisors while independent broker-dealers gained 207. Meanwhile, wirehouses lost around 522 advisors.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
