A majority of breakaway brokers have their eyes on LPL and Raymond James, according to a report by Cogent Research, a Massachusetts market research firm.
According to the report, over two in 10 of all advisors and nearly three in 10 working for a national wirehouse are open to the idea of moving to a new firm. Of these potential breakaway advisors, 43% rate LPL as high consideration and 40 percent for Raymond James.
"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," said Meredith Lloyd Rice, Senior Project Director and co-author of the report. "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."
High consideration includes ratings of five to 10 on an 11-point scale, where zero is "not at all likely" and 10 is "extremely likely." The survey had a sample of over 380 financial advisors likely to move to a new firm in the next two years, and a list of 25 broker-dealer firms.
Other top broker-dealer firms that potential breakaway advisors are considering include Wells Fargo Advisors, Ameriprise, and Morgan Stanley Smith Barney (now Morgan Stanley Wealth Management).