Teams have been popular among the wirehouses and other types of firms. Morgan Stanley encourages teams so much so that to receive referrals of wealthy self-directed or workplace customers from E*Trade Financial, the advisors must be on a team.
According to AdvisorHub, roughly 650 teams with 1,600 advisors, or roughly 10 percent of Morgan Stanley's 16,000 advisors, are eligible for E*Trade referrals.
The program's algorithm also rewards those teams that have more success in closing with customers.
Across the industry, firms are targeting self-directed investors as a potential source of next-generation clients. According to Cerulli Associates, firms can double revenues when clients transition from self-directed to full service. But a major downside remains. According to Cerulli, "Nudging clients too aggressively could trigger firms' regulatory obligations and raise questions about if the shift is suitable for the clients or in their best interests."
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
