LPL Financial and Raymond James remained the favorite broker-dealer choice among financial advisors who are thinking of leaving their current situations, according to Cogent Reports.
Advisor Channel Migration Trends released by Cogent Wednesday shows that 49 percent of advisors who are considering leaving their employers would consider LPL Financial while 44 percent would consider going to Raymond James. The two firms topped the list last year also.
The other top firms that advisors would consider are Wells Fargo Advisors (37 percent), UBS and Commonwealth (both 29 percent), and Merrill Lynch, Morgan Stanley Wealth Management and Ameriprise Financial (all at 28 percent).
Cogent interviewed 1,749 advisors, 396 of whom (23 percent) said they were considering switching employers. Advisor satisfaction is lowest in the wirehouse and bank channels, Cogent says. Cogent is now part of Market Strategies International, an international research firm, which produced the report.
The factors motivating advisors to consider changing employers are more earning potential and access to a better array of investment products.
“LPL and Raymond James appear most successful in emphasizing the characteristics that matter most to advisors considering a move, including independent platforms, a destination for greater independence and superior operational support,” says Meredith Lloyd Rice, senior product director and author of the report. “Evolving advisor needs, including greater reliance on fee-based compensation, suggest that firms will need to work harder to adapt in order to attract and retain top producers.”