Schwab: Breakaway brokers increasingly jumping to RIAs
By Gary Linnell
ProWEB Wire (Industry News)
An increasing number of breakaway brokers are joining existing advisory firms instead of setting up new registered advisory firms, according to Charles Schwab Advisor Services.
Of the 172 new advisor teams that joined Schwab last year, 42 percent went to an existing RIA. Meanwhile, during the first quarter 2010, approximately the same percentage of brokers leaving wirehouses went to existing firms, Schwab said.
By way of comparison, in 2008, just 15 percent of the 123 new teams joined another firm, with about the same percentage joining established offices in 2007.
According to Bernie Clark, senior vice president and head of Schwab Advisor Services, "These [recruiting] firms are adding a significant individual, maybe an equity owner [who is] about to become a part of the leadership team."