Another Broker Fired over Expense Reports and Other Top Stories
Recent dismissal of a lifetime broker at the firm for indicates increasing sensitivity of big firms to compliance issues that managers may once have tried to quietly resolve.
2018 comp plan to recalculate broker payout with a “rolling grid” that adjusts monthly based on trailing 12-month production.
The wirehouse decimated a top producer’s business by falsely telling his former clients that he had overcharged them and by “reimbursing” their fees, according to his lawyer.
Wells Fargo Advisors goes to court to prevent client solicitations by veteran who it alleges lost his right to protections of the Protocol for Broker Recruiting by registering his new firm without permission last summer.
Quarterly earnings reports dramatize Tale of Two Cities as the mass-affluent-targeted firms adjust their strategies.
Top comments of the week:
Wow, the big 4 wires are clearly threatened by the breakaways. Anyone who works at a wire who thinks that they own their book is a moron. If you are contemplating a breakaway move, work with a breakaway attorney specialist and follow all of the rules. There are many compelling reasons to unlock the ball and chain that is attached to all of the wire employees, but the biggest is that once you have created your own RIA, there is no ambiguity as to the ownership of the enterprise. This is huge. Good luck to all of you who are contemplating a breakaway. I did it, so can you.
By Diogenese on Morgan Stanley to Change Payout Calculation
Comp plans are more than an expense control. They are also a retention tool as well as a behavior tool. As always grids are designed to anchor top producers and encourage the mediocre “up or out”. There is nothing wrong with that. No different than the advisors themselves codling best clients and weeding the garden of not profitable clients…
As to Advisors taking time off it is a non-event for those who run their business consistent with MS best practices. If you derive the bulk of your revenue from fees, there is zero impact. Transactional advisors have blocked themselves out of extended holidays under all scenarios!
The new MS comp model is quite similar to the much loved Wells Advisors model and models of several large regional firms. Loved because they favor the high production advisor and reward the best of the best…
It’s ridiculous, most of the time it’s the brokers’ own money that they’re using to get reimbursed with. It’s a use it or lose it system, it’s set up to fail and be manipulated