What’s the current environment?
We are having a record recruiting year and should be up 15 or 20 percent year over year for 2008 vs. 2007, which was a record year.
Over the years, we have successfully recruited in all channels – insurance, banking and financial institutions.
The major investment banks have represented about 30-33 percent, or one third, of recruits. Another third or so come from other independent firms. About 20 percent come from insurance companies and affiliates, and the remaining 10 or 15 percent are from other banks, such as regional institutions.
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What factors are affecting today’s recruiting market?
Recruiting is always a push-pull process.
The pull for us is our national footprint, technology platform and advisor support – which are universal across our channels.
The push depends on how Wall Street is doing and what other firms’ clients are thinking; they may trust the advisor but not the broker-dealer. And some Wall Street advisors are having issues with succession planning.
How is this playing out for your firm?
For us, the ratio (or breakdown of advisors by firm type) has been consistent – but the volume of recruits has gone way up. Our leads through November 2008 were up 119 percent vs. 2007. It’s exploded.
We are talking with advisors who want to align with LPL Financial as a partner in the growth of their business.
Our goal is to be the best, not the largest, broker-dealer.