Two years later, a Merrill Lynch breakaway team has no regrets
No one took a pay cut, no one is answering to a manager anymore, and there's never a question about buying a stapler
Fun story on some of the behind the scenes activities on a breakaway. I did the same with a partner a number of years ago to join a small independent RIA. We’ve tripled the assets in the last 7 years and we and our client’s are way better off versus being captive in the wirehouse world. However, I would challenge the “no one took a pay cut” comment especially when it is followed by “though they have chosen to invest some of the profits they might otherwise have taken home back into the business.”
Welcome to the real world… this reinvestment will never end. There’s an array of reinvestment opportunities from systems, services, and marketing, to compliance, legal and insurance. Not that these investments aren’t worth making the change, but people shouldn’t make the switch expecting that these expenses will eventually go away “when everything settles.” It will never happen… especially at $250 million in AUM. Multiply that by 5 or 10 and you’ll start getting some economies of scale, if you’re good.
Similar story here, (transition from a wirehouse to an Independent B/D). The best move I’ve ever made.
**Full Disclaimer: The independent channel is not for everyone; if you don’t know how to run a business, you’re probably not ready to be independent.
Infamous stockbroker resolves civil suit stemming from violent tirade -- the apparent final chapter in an incident that went viral and forever branded him the 'Fairfield Smoothie Guy'
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September 1, 2022 at 5:11 AM
How a white senior vice president at an LPL OSJ came to hire a former black minister as recruiter despite the latter's pledge to make it 'uncomfortable' at times
Rob Sandrew hit it off with Keith L. Frasier, willing to speak up on racial and racial justice issues, who also checks all the boxes for attracting talent and assets at a firm that recruited $2 billion last year
August 19, 2020 at 2:18 AM
After recruitment of minorities and women gets CEO-level attention at Raymond James, a program gets a dynamic leader
With ratios stuck in the teens, CEO Paul Reilly gives chief marketing officer at subsidiary Carillon Tower Advisers, Renee Baker, her shot at mission impossible -- getting Advisor Inclusion Networks to live up to its Orwellian name
August 24, 2019 at 4:25 AM
Last year's RIA chief departs Raymond James after ship sails without her at helm of RIA unit, leaving her anchored to COO role
Maria Daley took the reins after Bill Van Law's unexpected departure, but Greg Bruce came on in March to lead RIA Unit, a job she held on interim basis
June 6, 2019 at 2:16 AM
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