8 Notes from Movement Trends in the First Half of 2022

So far, this year has proven that consultants are the real winners as companies have upped their games to become attractive landing sites with solid hiring deals to match. But the most powerful driver of movement comes from the consultants themselves – those who are looking for greater freedom and control over how they serve clients and grow their business.

As those responsible for hiring financial advisors and consultants, we’ve come to realize one thing: Our team is constantly immersed in data about the things advisors are preoccupied with – whether or not they’re considering a change.

Frequently Asked Questions:

Why are advisors moving?

Where are they going?

What do transition deals look like?

Which companies are winning the hiring race and which companies are losing?

Will this speed of movement continue?

What’s interesting is that none of this information is in one source—it was obtained from a variety of sources, as well as from our own experiences.

So we took it upon ourselves to fill the void. That is, to provide a compendium of a single source of key data on the movement of the adviser. To this end, Diamond Consultants . has created Consultant relocation reportAnd the An update on the movement of advisors in the wealth management industry, Covering the first half of 2022.

While it is difficult to obtain accurate data on advisors’ movements, the report serves as a framework for advisors who are curious about changes in the wealth management industry and the potential impact on their business.

The good news is that even in the midst of a turbulent economy and market, the movement of advisors in the first half of 2022 was extraordinary! Keep these eight main points in mind:

1. 4,249 seasoned consultants (those with tenure >3 years) changed companies in the first six months of 2022. That’s an average of 708 consultants moving per month!

2. Collection centers were among the main losers in the number of consultants’ staff –Down over 300 advisors.

3. In the wire world, the first six months of this year revealed huge deltas between winners and losers –Morgan Stanley

Ms
87 advisors added net while the rest fell on a net basis.

4. Independent firms have had the most success in hiring-Add 287 advisors on a net basis.

5. Transfer deals were at record levels – on average 250-350% of T12 for W-2 consultants and 30-100% of T12 for independent consultants. These numbers showed no signs of abating. And for the most sought-after advisors, many firms have shown a willingness to craft creative (and eye-catching) deal structures.

6. Consultants moved to and from companies with or without the protection of the Protocol-It appears that the lack of protocol protection did not deter data-driven traffic. For example, any consultant who joined Morgan Stanley, winner of the 2022 H1 recruitment, did so without the protection of the protocol.

7. The fact that Regional firms have also added nearly 200 consultants On a net basis is further evidence that consultants want more than the best hiring deal: they are looking for better culture and greater control, too.

8. Some advisors moved between channels without changing companies. For example, several consultants have slipped into Wells Fargo’s independent FiNet channel
WFC
from another division of the company. This represents an interesting trend in the industry: Several companies, including LPL, Stifel Nicolaus and Raymond James, have expanded the ways in which advisors are allowed to join.

So, what is driving all this activity?

There is no doubt that the vendor market fueled by the increasing competition between models has put quality consultants in the driving seat when it comes to recruitment packages.

But it’s much more than just the high water deals that motivate advisors to consider a change. The biggest driver of this momentum is the desire to serve customers better, get more value from their company (more in proportion to the revenue the company holds), and grow without constraints.

In addition, consultants are thinking about the bigger picture and the longer term—with a sharper focus on building enterprise value.

So if their current company doesn’t prove to be the best partner to achieve all of these goals, the expanding waterfall of possibilities provides advisors with ever more legitimate options that will tick every one of those boxes and then some.

Will the Chancellor’s movement speed continue in the second half of 2022?

Certainly, market volatility may affect those advisors who tend to be less inclined to consider change in a volatile market. Outside of market conditions, a “supply shock”—such as a traditional company offering new retention incentives or an improved-place retirement program—may hamper hiring efforts. But so far, all indications are that the momentum will continue.

Ultimately, the first half of 2022 proved that consultants are the real winners as companies step up their games to become attractive landing sites with solid hiring deals to match. But the most powerful driver of movement comes from the consultants themselves – those who are looking for greater freedom and control over how they serve clients and grow their business. With the ever-increasing choices in the industrial landscape, it’s hard to imagine the momentum slowing any time soon.

The Consultant relocation report available for Download on the Diamond Consultants website.

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