Advisors' Career Choices Today: '31 Flavors,' Top Recruiter Says

As they move, financial advisors face a growing and powerful array of options, says Mindy Diamond

One recruiter and consultant says the industry has gone through a “paradigm shift” and has decided to shift her practice accordingly: Mindy Diamond of Diamond Consultants.

The veteran recruiter recently expanded her work to include assisting independent financial advisors and the principals of wealth management firms in building their businesses.

“We have the associations and the industry knowledge to make smart and efficient introductions to help these professionals get where they want to go,” said Diamond.

“Whether they are looking to purchase another firm in order to expand their enterprise, monetize a portion of their business, or determine their succession plan, we are able to help make their goals a reality,” she added.

The shift from recruiting to consulting is a trend that Diamond sees playing out throughout the advisor landscape.

“The whole paradigm has shifted now,” she said in a phone interview from her office in Chester, N.J. “ Now, it’s a move really to move high-quality books of business.”

This means advisors are focusing more on the long-term value they can accumulate with a successful practice and less on the short-term recruiting deal. “And there are so many more options today than there were a few years ago,” Diamond explained.

Recruiting deals today, however, are attractive. They range from about 200-250% of trailing 12-month fees and commissions at the boutique firms to 300-330% at the wirehouses. Generally, the upfront payout is 140%, regardless of the channel, she says.

As a result, Diamond suggests that advisors looking to move meet with a couple of wirehouses, independents and boutiques to help them decide which type of firm is best. “The interest in independence still really seems to be growing,” she added.

“Growth can come in lots of different forms,” Diamond noted, for advisors, broker-dealers, RIAs and even recruiters. 

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