A sizable minority of advisors are considering jumping ship to other firms, and LPL and Raymond James top the list of likely destinations, according to a new report from Cogent Research.
The Cambridge, Mass.-based research firm found that 22% of all advisors and 29% of advisors working for a national wirehouse are open to the notion of moving to a new firm. Among these potential breakaway advisors, 43% gave high consideration to LPL and 40% to Raymond James, respectively.
These were followed by Wells Fargo Advisors (36%), Ameriprise (30%) and Morgan Stanley Smith Barney (28%). The latter firm has dropped Smith Barney from its nameplate.
"Stronger preference for Raymond James and LPL among advisors seeking a move suggests that these firms are on the right track and competitors should take note, Meredith Lloyd Rice, senior project director at Cogent and co-author of the report, said in a press release. "In particular, the national wirehouse firms need to investigate the root causes of dissatisfaction among their current employees in order to retain top producers and prevent imminent defections."
Cogent's Advisor Channel Migration Trends 2012 survey polled more than 380 financial advisors likely to move to a new firm in the next two years. Among the 25 broker-dealers included in this year's survey, consideration scores ranged from a low of 12% to a high of 43%.