Recruitment of advisers started slowly this year

Business in the consulting sector is starting much more slowly this year.

The total number of adviser moves between firms in the first quarter was down 4% from the previous three months and 12% from the comparable period in 2021, according to the InvestmentNews Advisers on the Move database. The data excludes movements resulting from mergers and acquisitions, as well as those of advisers between related entities.

The pace of industry recruitment has remained weaker since the onset of the pandemic and subsequent work-from-home policies and travel restrictions. Between the first and second quarters of 2020, the total number of adviser moves fell by 24%.

In the nine quarters before the pandemic, an average of 4,570 advisors changed firms each quarter. Over the next nine quarters, the average fell to 3,893.

Although recruiting activity ultimately rebounded somewhat in 2021, the 3,652 travel advisors in the first quarter were the lowest since the immediate aftermath of the pandemic in the second quarter of 2020.

While a return to in-person events and the lifting of many travel restrictions are sure to further facilitate Advisor networking and perhaps an increase in recruitment, the recent drop in activity also coincides with an extended period of volatility. of the market. Nervous clients and fluctuating asset valuations could make the jump difficult for some advisers.


According to recent survey data from InvestmentNews Research, only 58% of advisors expect stock markets to improve over the next 12 months, while 30% expect them to decline. Perceptions of the overall economy were entirely overwhelmed, with only 32% expecting it to improve and 57% expecting it to deteriorate. On both fronts, sentiment was also at its lowest since the immediate fallout from the pandemic.

While overall recruiting activity is down, RIA and Independent Broker channels continue to attract experienced advisors to the net, gaining 341 and 207 advisors respectively this quarter. Meanwhile, hookup houses lost 522 advisers on the net.

Main net gains of the 1st quarter

Main net gains of the 1st quarter Advisors earned
LPL Financial 149
Loyalty brokerage services 98
Raymond James Financial Services Inc. 49
Citigroup Global Markets Inc. 44
Morgan Stanley 37
GWFS Equities Inc. 31
Cambridge Investment Research Inc. 29
Citizens Securities Inc. 27
Raymond James & Associates Inc. 23
Fisher Investments 23
RBC Capital Markets 23

Main net losses of the first quarter

Main net losses of the first quarter Lost Advisors
Merrill Lynch Pierce Fenner & Smith Inc. 302
Wells Fargo Clearing Services 230
Edward Jones 94
HSBC Securities (USA) Inc. 69
NYLife Securities 44
MML Investor Services 35
UBS Financial Services Inc. 27
Securities America Inc. 27
Northwest Mutual Investment Services 26
Fair Trade Advisors 23

Sharp Q1 Channel Changes

Sharp Q1 Channel Changes Advisors earned
RIA 341
Independent broker-dealer 207
Discounter 149
Regional Broker 70
Institutional -5
Bank -28
Insurance broker -212
Wirehouse -522

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