How to Help Employee Advisors Who Want More Independence
While the advisors initially considered independent options, thinking this was the only way to achieve their goals, they ultimately discovered that Wells Fargo supported their vision for additional autonomy while retaining the scaffolding and work/life balance they coveted.
Wells Fargo offered them the ability to have a unique brand on their website and a custom-built space and demonstrated through the recruitment process that management could remove obstacles more easily than they experienced at UBS.
The Regional Firm Perspective
Regional firms such as Raymond James & Associates, RBC Wealth Management, Ameriprise Financial and Stifel have evolved their platforms, technology, and human capital to meet the needs of sophisticated wirehouse teams.
With their emphasis on culture and treating the advisor as a client, they’ve become a popular destination for those disenfranchised within the larger brokerages yet not interested in independence.
Consider “Jake,” a $300-million Merrill lifer, who loved his time at the wirehouse but was getting frustrated by the bureaucracy. He needed more administrative support, was pressured to cross-sell banking services and was constantly blocked by compliance for routine tasks.
So when Jake started his exploration process, he thought the only solution was to go independent. To him, all employee firms were the same. He really liked the creativity available in the independent space and the day-to-day control he would have as a CEO. However, he had a lot of unvested deferred compensation and had never monetized his business before.
Jake landed on a “middle ground” option, choosing to go to RBC to monetize his life’s work and recoup some of his deferred compensation. Overall, RBC had a more entrepreneurial culture, offering an extra support team member and a simplified and consistent compensation plan that no longer emphasized banking.
When he wanted to get something done for a client, management felt much more accessible within a flatter organizational structure.
The Boutique Firm Perspective
Lastly, there are boutique firms, a popular option for those looking to be employed by a firm with a bespoke brand and community of higher-producing advisors focused on the high-net-worth segment.
“Michael,” a $700-million bank advisor, dreamt about owning his own business — and even selected an office location and secured his brand name. Although Michael enjoyed growing his practice at his firm, his clients started to ask for more — like tax preparation, in-house estate planning, and unique alternative investments. Yet he was unable to provide those services.
As he watched his colleagues leave the firm, Michael realized there had to be something that would allow him to better serve his clients.
He started by exploring a few of the popular “supported independent” platforms, thinking these would be the only path to achieve his goals. In parallel, he decided to take one meeting with Rockefeller Capital Management.
Surprisingly, Rockefeller checked off every box Michael was looking for while still having the comfort and familiarity of being an employee. The “boutique” culture of only hiring larger teams with a similar client base meant compliance would be much more flexible.
Plus, true open architecture with third-party asset custody and enticing economics made it difficult to ignore.
Every advisor’s view of independence is different — and how each identifies what it means to be independent is specific to them. That is, having absolute agency and autonomy as a business owner or simply a few more degrees of freedom and flexibility as an employee.
And since the waterfall of possibilities has evolved, it is now much more likely that an advisor can find their version of “independence” — even in an employee firm.
Allison Brunwasser is a recruiter and consultant for financial advisors and a senior consultant at Diamond Consultants.
Photo Credit: Adobe Stock
