BDs Taking a Hit as More Advisors Choose Independence: Cerulli
Many broker-dealers are finding it difficult to generate net growth in advisor affiliations as alternative affiliations become more popular, according to a new report from Cerulli Associates. Wirehouses are especially at risk of losing advisors, the report said, as their advisors often say they are undecided whether to remain affiliated with their firm over the next year. The advisors identified several challenges of operating at wirehouse firms, including insufficient staffing support, changes to compensation and imposed minimum for new clients. The research found that 71% of all advisors, on average, would prefer independent affiliation if they were to change firms, compared with only 44% of advisors who are currently independently affiliated.
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