According to an article in Registered Rep last week, advisors producing less than 300k a year are no longer welcome at UBS. Merrill Lynch also rolled up the welcome mat on producing brokers and advisors below that threshold back in December.
Now that the larger, inefficient firms have decided to no longer nurture smaller producers, the independents will feast on the wirehouse’s inability to be profitable on many of these solid reps.
It used to be that financial advisors never got fired. That’s because, how did the saying go? As an advisor, “You eat what you kill”…these days, financial services firms—the big names, at least—are letting the bottom quintiles (or so) go—much to the delight of independent broker/dealers who are very happy to pick up $200,000 to $300,000 producers.
If UBS and its bloated ilk can’t turn a profit on a 300k advisor and his clientele, sucks for them. These steady producers and their customers will find homes elsewhere. I guess now that institutionalized tax evasion isn’t being tolerated, UBS has other things to worry about.
Full Story: Smaller Advisors on the Firing Line
Full Disclosure: I have no positions in UBS