Recently, there has been an apparent slowdown in advisor recruiting as firms focus on increasing their headcounts and assets through mergers and acquisitions. According to the InvestmentNews Advisors on the Move Database, this year has been slow for transitions.
Total moves of advisors between firms were up only 1 percent during the year's first half. This was primarily due to LPL Financial's deal with CUNA Brokerage Services. The deal between LPL and CUNA resulted in more than 500 advisors moving their registrations to LPL. Even with the CUNA and LPL transition, moves of experienced advisors were down 7 percent from the first half of 2019.
In the second quarter, 840 advisors on net moved to independent broker-dealers, 270 to registered investment advisers, 114 to discount brokerages, and 18 to the institutional channel. Meanwhile, a net 639 advisors left banks, 418 left wirehouses, 156 left insurance broker-dealers, and 29 left regional broker-dealers.
LPL gained 728 advisors, Fidelity gained 113, Ameriprise gained 77, and Cetera gained 73. Meanwhile, CUNA lost 583 advisors, Merrill Lynch experienced a loss of 275, Wells Fargo lost 139 advisors, and Edward Jones experienced a loss of 96 advisors. More advisors transitioned to independent broker-dealers and RIAs than to other channels during the second quarter.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
