Broker Dealer recruiting
Sometimes there is no rhyme or reason behind advisor broker dealer movement, but overall we typically see less activity in extreme down or up markets. It is no secret that broker dealer recruiting was very slow for most Independent broker dealers for the first three quarters of the year, but it has picked up for a lot of firms as we move into the fourth quarter.
This recent story in InvestmentNews discussed this uptick in movement and specifically looks at two Independent firms that have had success in the fourth quarter of 2013. In this article titled Recruiting numbers are adding up for LPL Jodie Papike is quoted saying-
Leading independent firms such as LPL, Raymond James Financial Services Inc., the independent broker-dealer arm of Raymond James Financial Inc., and others are enticing brokers for a variety of reasons, said Jodie Papike, executive vice president of Cross-Search, a third party recruiting firm for advisers and independent broker-dealer employees.
“There’s no real one trend to explain the improvement in recruiting, but LPL is always a good indicator because it’s so large and has the largest number of recruiters,” she said. “Other big broker dealers are busy, too, and they are all offering a lot to recruits, including (money for) transition support, practice management tools and marketing ideas for advisers to take their businesses to the next level.”
Regardless of why advisors move when they do, we have found that advisors who are experiencing problems at their current broker dealer are thrilled when they explore broker dealer option and see what is available to them. Broker Dealers are doing a fantastic job of helping advisor transition their practice and are helping them in taking their practice to new levels. There is no doubt that changing broker dealers is no easy task. Anyone that promises perfection is not being realistic, but the payoff to a move can certainly outweigh the burden.
We recently moved an advisor that had put off a broker dealer change for over a year. He was looking for more product selection and a firm that would help him grow his business. With proper planning, the transition was smooth. This advisor is now moved to the new firm and couldn’t be more pleased with his decision. The proper broker dealer for an advisor’s specific needs can make all the difference in their practice.