From the Desk of Jim Eccleston at Eccleston Law LLC:
In a recent market trend, top branch managers are leaving national wirehouses for smaller firms. This trend can be attributed to two distinct causes: job uncertainty and an increase in the amount of assigned advisors.
Previously a secure job, firm merges and a reduction in the number of total branches today have led to uncertainty. Given fewer opportunities for branch managers to find employment, or continue, at wirehouse firms, managers also now receive less pay.
Not only is there uncertainty and less pay surrounding the position, branch managers find themselves having to manage two to three times more advisors than before. This makes it tougher for a branch manager to have a direct impact on an individual advisor’s business. Instead of focusing on their advisors’ practices, branch managers find themselves in a constant cycle of recruiting additional advisors in order to keep a branch’s metrics.
All of those facts have caused many top branch managers to switch from wirehouses to smaller firms. In those smaller settings, branch managers have greater job security and are able to spend more time with their existing advisors. In addition, managers are given the freedom to coach and run a business, in addition to recruiting—things that attracted managers to the position in the first place.
The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.
