We are seeing an increase in broker transitions between wirehouses, and it is not only the larger producers who are making these moves.
While large teams may have an easier transition, and have more leverage in the contract negotiations, we have found that firms are more willing to negotiate terms with lateral hires, depending on the team and the details, and depending on the region, there seems to be an increased desire to recruit new teams.
Some in the industry believe that the moves are a function of the wirehouses growing their lending capabilities in an effort to bring in more assets and deepen client relationships – particularly with wealthy and ultra-wealthy clients.
Just today Merrill announced that it has hired a UBS team with more than $3 million in revenues. The team said that one of their reasons for moving was lending capabilities at Merrill.
