Trends among wirehouses demonstrate that recruiting numbers continue to decrease throughout the industry. Investment News has compiled the number of advisors leaving the wirehouses from 2014 through 2021.
In 2014, wirehouses experienced total recruiting losses of -722. The following year they saw a decrease in losses, totaling -426. Morgan Stanley experienced the bulk of recruiting losses with a total of -373.
In 2016, recruiting losses took a deeper dive with a total loss of -652. 2017 saw an even more significant loss of -1,041. The numbers continued to trend downward with -1,334 in 2018 and -1,594 in 2019. In 2020, the wirehouses demonstrated a slight improvement with losses totaling -1,310. However, 2021 numbers increased significantly, totaling -2,109.
Whether or not recruiting rebounds remains to be seen. Several factors are at play. Morgan Stanley and UBS shocked the industry by exiting the Protocol for Broker Recruiting, an industry agreement that makes it easier for brokers to leave one employer for another. Likewise, Wells Fargo has had a larger than a fair share of negative press. Finally, advisors are concerned with the homogenizing bank influences upon Merrill Lynch.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
