Wells Fargo Advisors has updated its internal transfer policy for its independent brokerage arm, Wells Fargo Advisors Financial Network (FiNet), as it sharpens its focus on external recruiting and practice growth. As reported by AdvisorHub, the new policy changes the criteria that FiNet practices must meet to hire advisors from Wells Fargo's employee-based private client group ("PCG").

Under the revised formula, a FiNet practice must now recruit at least one external advisor generating 75 percent or more of the revenue of any internal transfer it intends to hire. Previously, the policy focused solely on headcount, requiring three external recruits before adding an internal transfer.

John Tyers, president of FiNet, stated the firm adjusted the rule to balance a surge in interest from independent advisors while protecting the integrity of its recruiting pipeline. The change also prevents practices from sidestepping external recruiting efforts by stacking teams with high-producing advisors from within Wells Fargo's employee channel.

According to AdvisorHub, Wells Fargo remains the only wirehouse to maintain an independent broker-dealer platform, using FiNet to offer employee advisors a path to independence without leaving the company. At the same time, the firm aims to avoid diluting its higher-margin employee-based business or allowing internal moves to outweigh new outside talent.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.