Though there are not many broker/dealer defections in the news, movement within the the broker/dealer business continues. Merrill Lynch recently nabbed several professionals from Wells Fargo and Morgan Stanley. Though movement does not seems to be as prevalent as several years ago, it continues. Considerations for making a move remain the same. When considering
A recent article from Financial Planning suggests that financial advisors continue to be on the move in 2012. But the trend is not departures to the traditional wirehouses – instead, they are going independent:
Twelve percent of financial advisors change firms annually, according to [Chip] Roame, but two-thirds of those advisors are still “landing” at another
The Case
FINRA recently fined Merrill Lynch $1 million over a Texas Ponzi scheme. The case, which involved a San Antonio broker who was sentenced to prison was covered in a recent blog post in the Stockbroker Fraud blog.
The Merrill broker persuaded investors to put money into a partnership and used at
According to a recent survey, brokers and wealth managers will be on the move during the remainder of 2011 and in 2012. The survey, entitled “Wealth Management on the Move: The Moment of Truth” notes that there was a significant "buying" of advisors and wealth managers in 2008 and 2009 through retention packages. These usually took the form of
Last year FINRA published its social media guidelines as contained in Regulatory Notice 10-06. As discussed previously, broker/dealers are subject to very onerous restrictions when it comes to social media communications. The restrictions are so burdensome it is questionable why a financial advisor would use social media for business purposes beyond general networking.
A recent survey by Boston-based Alite Group found the following:
After the financial meltdown there was talk of the Securities and Exchange Commission imposing a fiduciary duty standard on financial advisors and brokers. That no longer looks like the case and apparently the SEC is only going to "study" the situation. Why does it matter? In Texas, a fiduciary-defendant has the burden of proof
Brokers Promissory Note Southern District of New York
Continue Reading Brokers have to pay bonuses back.
Predictions about a slowdown in financial advisor recruiting appear to be premature. Last week, Wells Fargo, which purchased Wachovia, which purchased AG Edwards, announced it was looking to add 1400 financial advisors. It plans to recruit 400 new advisors and obtain the others from other firms. This comes on the heels of reports that BofA intends to add 2000
From late 2008 through 2009 financial advisors were on the move. Thousands of brokers left their positions with firms like Merrill Lynch, Wells Fargo and UBS. Many transitioned to new brokerage houses enticed by lucrative signing bonuses and compensation packages. Others were simply unsure of ever changing policies and compensation systems that resulted from industry