- Despite the market crash and geopolitical turmoil, financial firms are still eager to hire advisors.
- Wealth management recruiters told Insider that business soared in 2020 and hasn’t slowed down.
- Here are 10 recruiters you should know who have helped top financial advisors make money moves.
Within the wealth management industry, tracking the many financial advisors who zigzag through the industry from company to company comes with the territory.
After all, the biggest wealth management firms have thousands of wealth managers with long-time clients, and the strength of so-called independent advisors independent of big banks and launching their own practices is growing.
The pace of counselors uprooting their practices briefly slowed at the start of the COVID-19 pandemic in 2020, but it hasn’t slowed since, recruiters told Insider.
Employers and advisors are also undeterred by the recent market slump. According to Louis Diamond, president of Diamond Consultants, for distribution houses, interest rate hikes actually encourage them to hire consultants with big books of business.
“It’s actually a good thing for businesses when rates go up like this because one of the biggest drivers of their profitability is net interest margin or how much they earn on customer cash,” he said, referring to the difference between interest income and interest paid. to lenders. “We’ve actually seen some customers, even in this market environment, up their offerings and are ready to be more aggressive or creative because hiring a new team could have a more positive impact than before.”
As for advisors, much of their initial compensation is based on their last 12 months’ earnings or their clients’ assets, so it’s best to switch companies now to minimize the impact of the market downturn.
“Anytime the market is down for an extended period, business is booming for recruiters,” said Casey Knight, executive vice president of Encore Search Partners. “When there’s a lot of volatility and advisors know their personal income is at risk or their business is going to take a hit, it’s a good time for them to improve their situation.”
With the flurry of advisor moves, Insider has identified 10 well-connected financial advisor recruiters and consultants who are active in the industry.
This list includes a team that transferred a former Merrill Lynch team overseeing $1.2 billion in client assets to Raymond James, a recruiter who hired five teams and solo for LPL Financial in the last 12 months, as well as one of the most- prolific outside recruiter for Wells Fargo.
This list does not include internal recruiters from wealth management companies, but rather external executives who work with multiple companies at once. Recruiters were recommended to Insider by industry sources through distribution networks and independent wealth channels. Here are the US-based financial advisor recruiters we’ve identified.