Updated Saturday, August 29, 2015 as of 4:59 PM ET

Cerulli IDs $74 Billion Exit From Wirehouses

Advisors don't need a national brand behind them to attract assets, say recruiters and RIAs after new research from Cerulli Associates that shows a strong flow of assets toward independent advisors from the big wirehouses.

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Comments (2)
"Once upon a time, in the far away land of Relationship-Building, there lived a humble financial advisor who's clients loved how she................."

Sure, manage money, assess risk tolerance, plan for future, retirement, taxes, etc.......but bottom line is clients probably don't care who the advisor uses for their custodian. They care about what the financial advisor has done for them, and the relationship they've formed with each other.

Ned Van Riper said it best, ''Clients are working with advisors based on their relationship with the advisor, not the firm behind the advisor"

Relationships 101.......... and they lived happily ever after.....
Posted by MARTY M | Thursday, April 17 2014 at 2:43PM ET
What a great summary Marty M.

Perhaps investors have seen some of our posts regarding the sad tale of Eastman vs. Morgan Stanley. I was a top producer for Morgan Stanley, an adviser with over twenty years experience as a CPA and a Personal Financial Specialist. When Morgan Stanley learned I was planning on leaving the firm, they finally went to work.

We filed a plea with FINRA hoping to articulate the lack of ethics and moral bahaviors of Wall Street's biggest banks. Issues such as "painting an advisors U5," "dirty hands", and a total lack of firm to employee fiduciary duty. The only issue to catch FINRA's fancy was a lack of standing arguement where FINRA's own power was abused. For this, FINRA dismissed Morgan Stanley from the case.

The bigger issues that you refer to here related to the total lack of respect the large Wall Street banks have for their retail clients and the advisers who serve them. In our case, a Morgan Stanley management person actually stated "Morgan Stanley owns the client relationship". Because of this belief, which in not apparent at the beginning of the relationship where the firms pay huge bonuses to get the adviser to move their book of business to the bank, the largest banks behave as if the client relationship exists as a firm asset whose purpose is to increase their revenues and profits.

Shame on Wall Street for not believing as you do, and as we do, that we are there to serve the client...solely. This is called a fiduciary responsibility and the fact that Wall Street continues to resist having this standard apply to them speaks loudly about who they actually serve.
Posted by JAMES C. E | Saturday, April 19 2014 at 8:21AM ET
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