Last fall, several national firms struck a blow to equitable advisor recruiting by exiting the Broker Protocol—a 13-year-old industry truce protecting member firms who recruit against one another from legal action (so long as they follow protocol guidelines).
A lot of ink has been ladled over succession planning for independent wealth-firm owners, and rightfully so. Many advisors lack plans for the day they can’t look after their clients anymore arguably goes against the fiduciary standard some of them work under.
Despite haunting tales of legal battles over client contact over the last year, you may be surprised to know that many financial advisors have successfully transitioned away from non-Protocol firms.
Throughout 2018, we forewarned investors the likelihood the stock market was willing to expand the price it pays for the growth of corporate earnings was fairly low. This assumption was further coupled with the recognition the market’s volatility, compared to the calm waters of 2017, would most certainly rise. Thus far, our expectations are being met.
Wells Fargo is under siege from every angle and it is easy to understand why. The mountain of corporate missteps, questionable ethics, and outright fraud have resulted in a series of investigations and fines for the once storied wirehouse, the ramifications of which have yet to be fully realized.
Investors’ hunger for portfolio diversification is driving more independent Registered Investment Advisors to consider alternative asset investments.