Transitions among advisors remain slow in 2023. However, RIA and Independent Broker-Dealer channels continue to bring in experienced advisors.
During the first quarter of the year, banks experienced a minimal net loss of only two experienced advisors to recruitment, significantly lower than the net loss of 280 advisors throughout 2022. However, it's important to note that the repercussions of the regional banking crises that unfolded earlier in the year have yet to manifest in the quarterly figures, according to AdvisorHub.
In contrast to 2022, wirehouse firms saw a relatively slower pace of departure among experienced advisors, with a net loss of 140 advisors during the first quarter. This figure is considerably lower compared to the 1,223 losses experienced last year and the 533 departures in the first quarter of 2022 alone.
Despite the overall slowdown in the industry, steady recruitment of experienced advisors continues in the RIA and Independent Broker-Dealer channels. 261 advisors joined RIAs, and 234 joined IBDs, reflecting comparable numbers to 2022. According to Cerulli Associates projections, hybrid shops are expected to gain 8% in headcount through 2025, while RIAs headcount is expected to grow 4.2%.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
