Wells Fargo Advisors plans to further reduce the number of managers who not only manage the office but also maintain client books. This action continues a shift toward larger branch complexes led by full-time, non-producing managers, according to AdvisorHub.
Most of the roughly 100 remaining producing managers will have to choose between working exclusively as financial advisors or giving up their books of business to remain in management, AdvisorHub reports. The view is that non-producing managers can spend more time recruiting advisors, developing teams and growing their organizations.
According to AdvisorHub, Wells Fargo began moving away from the producing manager model in October 2024, when it required many managers in key markets to choose between managing branches and managing client assets. At the time, the firm said those markets needed leaders who could focus full time on growth and recruiting.
Sol Gindi, head of Wells Fargo Advisors, previously said the approach would affect only a small portion of managers across the firm's hundreds of brokerage offices. He also said producing managers could continue to work effectively in smaller rural branches.
AdvisorHub reports that the producing manager model has faced increasing pressure across wirehouses. That said, Merrill Lynch and Morgan Stanley continue to use producing managers in some offices, while regional firms such as Raymond James have remained more receptive to the structure.
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