More recently, the outflow of Wall Street brokers has slowed considerably. That appears to be the result of brokers adapting to life at newly combined organizations and being tethered to their employers by retention bonuses that oblige them to stay for a certain number of years. Janney offers a recruiting package but, at 100% to 130% of the past 12 months' production, it's far less than what Wall Street brokerages offer.
Janney hires a small number of brokers new to the business each year but focuses mainly on experienced financial advisors. Acquiring brokers one by one, rather than buying another business, will remain Janney's focus, Lombard said. Also, it doesn't plan to expand the private client business beyond its current territory, which includes offices along the East Coast and into Ohio.
While Janney is increasing standards for its brokers, it continues to target so-called mass affluent investors, whom Lombard said are often overlooked by larger organizations. It targets clients with $500,000 to $5 million to invest.
"A lot of the new clients we are bringing in have felt abandoned by their firm," Lombard said. "To us, it's a very lucrative relationship."
Growth in Janney's capital markets business, including more research and banking activity, also benefits the firm's financial advisors and clients, Lombard said.
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