Will First Republic Advisors Flee to Bigger Firms?
Wirehouses and registered investment advisors could be among the key beneficiaries as the troubles affecting First Republic Bank and Silicon Valley Bank (SVB) make the biggest firms look more appealing, at least in the near term, advisor recruiting experts say. “The RIAs and the wirehouses are already reaching out to the wealth advisors at First Republic and also at SVB” to recruit them, said Patrick J. Burns, managing attorney of a law office that specializes in securities and investment advisors. The “flight to safety for clients and advisors will benefit” firms with the largest and safest reputations, “at least in the short run,” until the worries around smaller firms have faded, according to Andy Tasnady, managing partner of Tasnady Associates. He pointed to the four wirehouses in particular—Morgan Stanley, Bank of America-Merrill, UBS and Wells Fargo—as potential beneficiaries.
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