Press Releases

Cogent Research: LPL and Raymond James Set to Attract More Breakaway Advisors

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- A significant number of advisors are looking for opportunities outside their current firm, and the bulk of them are setting their sights on LPL and Raymond James. According to a new report released by Cogent Research, just over two in 10 (22%) of all advisors and nearly three in 10 (29%) working for a national wirehouse are open to the idea of moving to a new firm. In addition, the average at-risk advisor manages $107 million in assets compared to almost $140 million among at-risk advisors in the national channel. When asked about specific target firms, LPL and Raymond James earn the highest consideration among these potential “breakaway” advisors, with 43% and 40% likely to consider each firm, respectively. Rounding out the top five likely broker/dealer destinations are Wells Fargo Advisors, Ameriprise, and Morgan Stanley Smith Barney. These and other findings are included in the Cogent Research Advisor Channel Migration TrendsTM 2012 report, a survey of over 380 financial advisors likely to move to a new firm in the next two years.

“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. 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," said Meredith Lloyd Rice, Senior Project Director and co-author of the report.

When measuring advisors’ opinions of potential new employers, Cogent asked advisors to rate their likelihood to consider a list of firms using an 11-point scale, where zero is "not at all likely" and 10 is "extremely likely." High consideration includes ratings of five to 10. Among the 25 broker/dealers included in this year's survey, consideration scores ranged from a low of 12% to a high of 43%.

1.   LPL   43%
2. Raymond James 40%
3. Wells Fargo Advisors 36%
4. Ameriprise 30%
5. Morgan Stanley Smith Barney 28%
*Base: All Potential Breakaway Advisors
Source: Cogent Research® Advisor Channel Migration TrendsTM 2012

Top Broker/Dealer Firms in Aided Consideration

% of Advisors Rating High Consideration*

About Cogent Research

Cogent Research helps clients gain clarity, obtain perspective, and formulate direction on critical business issues. Founded in 1996, Cogent Research provides custom research, syndicated research products, and evidence-based consulting to leading organizations in the financial services, life sciences, and consumer goods industries. Through quality research, advanced analytics, and deep industry knowledge, Cogent Research delivers data-driven solutions and strategies that enable clients to better understand customers, define products, and shape market opportunities in order to increase revenues and grow the value of their products and brands.

Cogent Research
Anne Fallon, 617-715-7611

Source: Cogent Research