Clients Getting Stickier?
When an FA breaks away from his full-service broker/dealer to move to an independent firm, it is the ultimate test of client loyalty. And potential breakaways have gotten more confident that they'll hold onto client assets versus two years ago, according to a recent report by Aite Group titled Wealth Management on the Move: The Moment of Truth. The research shows wirehouse advisors believe they can hold onto an average of 61 percent of client assets, with nearly one-third expecting to retain more than 75 percent. This is up from an average of 50 percent for wirehouse FAs in 2009. Reps from other captive b/ds have also grown more optimistic, with an average expected retention rate of 45 percent, an improvement from 30 percent in 2009. Aite Group analyst Alois Pirker says the boost in confidence could be a reflection of the improvement in market conditions — “a mood elevator for clients.” In addition, the reps interested in breaking away today tend to be bigger producers than those who were breaking away a couple of year ago, says Pirker. And bigger producers are typically more confident in their client management abilities and may have longer, stronger relationships with their clients. — Diana Britton
