Recruiting in wealth management has evolved significantly, with major shifts in deal structures and compensation trends. The size of recruiting deals has increased dramatically over time, especially among wirehouses and independent broker-dealers, but these deals are often accompanied by strict performance goals and lengthy lock-up periods.
Clawback provisions and production guarantees are increasingly common, requiring advisors to meet specific asset transfer thresholds.
While the large headline numbers may seem appealing, advisors need to carefully evaluate the conditions tied to the offers. Understanding the fine print is essential for making informed transition decisions.
Finsum: The numerical details of these provisions are key to switching and certainly should play a pivotal role in your cost benefit analysis
- recruiting
- wirehouses
- IBDs
- changing BDs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
