In a clear sign that recruiting for the Independent broker dealer marketplace was slow in the first quarter of 2013, LPL released its earnings report showing they had recruited 115 new financial advisors. It is commonly thought that financial advisors change broker dealers at a higher rate when the markets are flat. The continued progress in the market coupled with no major industry fallout has kept a lot of financial advisors in their seats so far this year.
The numbers that LPL released are a clear indication of the struggles most Independent Broker Dealers are facing in their recruiting efforts. The bottom line is that advisors have to feel a certain amount of pain to make a move and when times are good most advisors are focused on new business and working with their existing clients.
Jodie Papike was recently quoted in Investment News titled Recruiting Slows for LPL, Raymond James in otherwise solid quarter, confirming that Broker Dealer Recruiting has in fact been tough for the first quarter of 2013.
“Most independent broker-dealers have struggled so far this year with bringing in new reps, one industry recruiter said. “It’s a representation of what’s going on,” said Jodie Papike, executive vice president of Cross-Search, an executive and adviser search firm. “It is a tough time.”
“Most of the recruiters I talk to are really struggling,” she said. Recruiting an adviser right now is a “longer process and requires more money. It just takes a lot more to get an adviser to move.”
For the full story in Investment News please click here! Recruiting slows for LPL