Wealth Management Consulting

April 2023

What has First Union, Silicon Valley Bank & Credit Suisse taught us? 

As history has shown us time and time again, banks are not good at wealth management. Here we are yet again seeing that proven in dramatic fashion.

Our industry has only one constant – it is consistently inconsistent.

It is not only unpredictable but even more frightening than its unpredictability,  is its total lack of preparation for the era ahead of us.

The next decade within wealth management will be one of unprecedented change.

The weeding out process has only just begun. In an era where expenses are rising for financial firms on every level while concurrently margins are being compressed it will be tough for many firms to survive.

LIONS, TIGERS AND BEARS OH MY……NO REALLY!

I have a reputation somehow…or maybe I am on a list which I don’t know about – whatever the case I tend to get the call from the terminated advisor. It is almost always “Pro-Bono” given that very few firms will do much, if any at all for my compensation let alone any accommodation for the terminated advisor.

I treat a terminated advisor as a moment of absolute commitment and I honor the role. For any advisor irregardless of their size, it is the end of their world. It is always emotionally gut wrenching for me. 

Over the past 10 years the average number of terminated advisors that I would assist any given year was typically 3. Almost always it was an advisor doing less than $750,000 in T-12. The most common firms in order of frequency : Merrill, Wells, UBS, Morgan…

The past two years…double digits. Over 10.

The average production? It has only continued to rise. I have consulted advisors doing in excess of $5M. The “untouchables” are now the target. The firms? Merrill and UBS have become land mine riddled – Morgan Stanley is right there in the mix. I have had advisors actually resign simply because they were paranoid that they were next.

The most common reason for termination?

“Against Firm Policy.”

What we are witnessing is a systematic strategy by firms to capture assets. I would not be surprised to see a class action suit by advisors 5 years from now when they find out that this was collusion. 

If I am at Merrill, Morgan Stanley, Wells or UBS  I am planning where I am going to move to right now. If for no other reason than to protect my career from being over for any reason. It doesn’t matter how untouchable you think you are.

LOOK TO YOUR RIGHT, LOOK TO YOUR LEFT.

ONE OF YOU WILL BE GONE IN 5 YEARS.

If I am sitting at Oppenheimer, Stifel or Janney or any mid to small sized firm right now you need to be aware that within the next 10 years it is likely that your firm will be gone…either the bad gone or merger gone. They will not be able to compete in the decade ahead.

Here are some simple rules and givens:

If you are at a wirehouse, have a backup plan.

Moving is not easy, but it is better than the alternative. Changing firms has never been easier.

Clients are demanding more services at a time when firms are simply not providing the adequate resources to accommodate their needs.

Moving to an RIA model is simply the best available option for any advisor regardless of size. If you are an advisor doing in excess of $1M at a wirehouse, get out now.

I am available anytime at no cost to you:

I may sound negative on the sector. I am not.

It is one of the most dynamic wonderful sectors anyone can be a part of.

The fact is that the times are changing rapidly.

In the last 10 years I have helped some of the largest financial advisors & Teams  in the country change firms or start their own firm. I have also helped the sub $250,000, , the terminated and first timers find their path. I will welcome a call from any advisor regardless of size or situation anytime.