Wednesday, November 25, 2015

Brokers Not Buying the Credit Suisse Wells Fargo Deal

Wells Fargo Advisors
That exclusive deal between Credit Suisse and Wells Fargo is not working out as planned. As advisers and their counsel examine the deal, and the transitioning adviser's options, the Wells Fargo deal has some significant issues.

Credit Suisse is shutting down its private banking operations and last month announced a transition agreement that lets Credit Suisse brokers move to Wells Fargo. We believe that many brokers will take advantage of the deal, if for no reason other than Credit Suisse has threatened to withhold their deferred compensation if they do not go to Wells Fargo.

However, large producers do not like the deal, since there is a cap of $5 million on transition bonuses. For producers who are generating 2-3 million in revenue, and with firms paying 2-3 times trailing 12 as an upfront loan, a five million dollar cap is obviously an issue.

Wells Fargo is attempting to address that concern by offering an additional $2.5 million in deferred compensation vesting over 4 years, but that might not be enough to lure the Credit Suisse brokers. Other firms have stepped into the void, including UBS which has been aggressively recruiting brokers.

Last week a Credit Suisse team left with $3.2 billion in assets and went to UBSToday's defection goes to Morgan Stanley, as a team managing 5 billion dollars at Credit Suisse has joined Morgan Stanley in New York.

Related Posts:

Transition Agreements are Negotiable - Even for Credit Suisse Brokers

Credit Suisse Brokers Losing Deferred Compensation

Mark Astarita is a nationally known securities lawyer who has represented brokers and advisers in their transitions, loans and compensation issues for decades. He has negotiated deals, settlements and agreements with every major brokerage firm and dozens of regional firms. Mark has also represented brokers in disputes with every firm and does so in an efficient and cost effective manner. Call him for a free telephone consultation, and let’s see how I can help you. 212-509-6544 or email -
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