Advisor Moves in February: Analyzing Key Shifts and Trends
February brought notable movement in the financial advisory space, with thousands of advisors changing firms, leaving the industry, or moving into new roles. Below, we’ll explore the standout firms that attracted the most new advisors, those that saw the largest departures, and why these shifts may have occurred.
Overview of Advisor Hires
1. Cetera Investment Advisers – 269 New Registrations
Cetera has long emphasized a supportive, advisor-focused culture, offering a range of technology and practice management solutions. The high number of new registrations here signals that advisors continue to see value in Cetera’s hybrid RIA model and its growing platform.
2. Cetera Advisor Networks – 138 New Registrations
Under the same umbrella as Cetera Investment Advisers, Cetera Advisor Networks also saw strong inflows. These hires highlight Cetera’s overall strategy of bolstering its presence in the independent broker-dealer space by providing robust support and flexibility for advisors of varying business models.
3. LPL Financial – 130 New Registrations
LPL remains one of the largest independent broker-dealers. Their appeal often lies in offering advisors greater autonomy, a broad selection of technology tools, and the scale of a well-established platform. These qualities make LPL a consistent destination for breakaway teams or advisors seeking independence.
4. J.P. Morgan Securities – 56 New Registrations
J.P. Morgan Securities’ strong brand reputation and diverse financial product offerings continue to attract advisors who want access to high-net-worth clientele and deep research capabilities. The company’s emphasis on integrated financial services can be a compelling draw.
5. Morgan Stanley – 55 New Registrations
Morgan Stanley remains a premier choice for advisors aiming to align with a global powerhouse known for its institutional and wealth management services. The firm’s continued investment in digital capabilities and advisor support contributes to its steady new registrations.
Biggest Departures
1. Concourse Financial Group Securities – 405 Departures
Concourse’s notable departures are attributed to Cetera’s acquisition. After a merger or acquisition, it’s common to see advisor movements due to integration processes, cultural realignments, or overlapping platforms. Many of these departing advisors have reportedly landed at other Cetera-affiliated entities.
2. J.P. Morgan Securities – 304 Departures
Even large, well-established firms like J.P. Morgan aren’t immune to turnover. The reasons can range from new compensation structures to advisors seeking a more independent model. High-profile exits sometimes happen in tandem with new hires, reflecting the dynamic nature of the financial services industry.
3. Fidelity Brokerage Services – 193 Departures
Fidelity is known for its retail and institutional offerings. A departure figure like this might indicate advisors choosing to transition into different channels—either fully independent firms or broker-dealers with specialized services. It could also reflect broader restructuring within Fidelity’s regional branches.
4. LPL Financial – 178 Departures
Despite adding a high volume of advisors, LPL also saw notable departures. This turnover underscores the competitive environment in the independent broker-dealer space: as advisors gain experience, they may explore other firms or move to fully independent RIAs.
5. Merrill Lynch – 175 Departures
Merrill Lynch is a key player in the wirehouse segment, which has been seeing a gradual shift as some advisors opt for more autonomy in independent channels. Nonetheless, Merrill retains a robust presence, and its departures reflect an ongoing industry trend of wirehouse-to-independent transitions.
Why These Advisor Moves Occurred
- Mergers & Acquisitions
- As seen with Concourse Financial Group Securities, M&A activity can prompt advisors to reconsider where they want to be aligned. Cultural fit, technology integration, and compensation changes often drive post-acquisition departures.
- As seen with Concourse Financial Group Securities, M&A activity can prompt advisors to reconsider where they want to be aligned. Cultural fit, technology integration, and compensation changes often drive post-acquisition departures.
- Search for Independence
- Advisors continue to seek greater autonomy over their practices, leading many to move from wirehouses to independent broker-dealers or RIAs. Firms like LPL Financial and the Cetera entities provide platforms that appeal to entrepreneurial-minded advisors.
- Advisors continue to seek greater autonomy over their practices, leading many to move from wirehouses to independent broker-dealers or RIAs. Firms like LPL Financial and the Cetera entities provide platforms that appeal to entrepreneurial-minded advisors.
- Evolving Compensation Structures
- Shifts in firm-wide policies or new grid adjustments can motivate advisors to change firms. Even top-tier organizations like J.P. Morgan or Merrill Lynch aren’t immune to advisors leaving for more favorable compensation packages.
- Shifts in firm-wide policies or new grid adjustments can motivate advisors to change firms. Even top-tier organizations like J.P. Morgan or Merrill Lynch aren’t immune to advisors leaving for more favorable compensation packages.
- Technology & Client Experience
- Firms that invest heavily in user-friendly technology platforms and comprehensive client support often gain a competitive edge in recruiting. Advisors increasingly value robust digital tools to streamline operations and enhance service quality.
- Firms that invest heavily in user-friendly technology platforms and comprehensive client support often gain a competitive edge in recruiting. Advisors increasingly value robust digital tools to streamline operations and enhance service quality.
- Brand & Culture Alignment
- Advisors frequently cite firm culture and alignment with their values as a determining factor. Reputable firms with strong leadership and consistent messaging can attract and retain top talent.
- Advisors frequently cite firm culture and alignment with their values as a determining factor. Reputable firms with strong leadership and consistent messaging can attract and retain top talent.
Staying Ahead of the Curve
Advisor movements are a monthly reality. AdvizorPro tracks these changes in real-time, often before they’re publicly announced, helping you:
- Identify potential breakaways or hiring trends early.
- Target recruitment efforts strategically.
- Understand market dynamics and competitive shifts.
By keeping a pulse on these transitions, firms can better align their strategies for growth, recruitment, and retention.
Final Thoughts
The financial advisory landscape saw significant changes in February, with both high-profile gains and notable departures. Whether driven by acquisitions, the pursuit of independence, or the lure of robust technology platforms, advisors continue to seek environments that best support their clients and business goals.
Interested in gaining insight into these moves sooner? Reach out to AdvizorPro for real-time data on advisor transitions and industry trends.
