Broker-Dealers are struggling to recruit financial advisors. The reasoning seems to be that the stock market is breaking new ground and revenues are streaming in, and thus, advisors seem hesitant to change affiliations or break away from the big wirehouses.
The volume of advisor movement has slowed throughout the industry but it seems to be a cyclical problem. On top of the increase in production there are also advisors who are committed to doing their due diligence. Also, more importantly, contributing to the cycle is the increase in competition. Firms have beefed up their marketing efforts accordingly.
Firms have implemented many tactics like inducements and referrals. Referrals are definitely a key source for many broker-dealers. The industry’s reliance on referrals is said to be the new phenomenon. Firms have also added and expanded their business development teams by adding new directors of transition and support and national directors of recruiting to help shepherd newcomers.