Financial advisors

Jan

2017

Current Ameriprise Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC :

Ameriprise has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 10% and 30%. Additionally, the hurdle in order to meet back-end production goals under the deal is:

· Year 1: Hurdle – 65% of assets and revenue

Payout bonus: 10% to 30% of production

All proposed deals are negotiable and reflected in numerous agreements such as promissory note and employment agreements. Reps should retain qualified legal counsel to review those documents in advance of committing to transition to a new firm.

Jan

2017

Current Wells Fargo Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC :

Wells Fargo has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 125% and 150%. Additionally, the hurdles in order to meet back-end production goals under the deal are:

High Performance

Premier Advisor Status

Client Experience

Full best practices adoption
Envision 80% average
Advisory – 60% Advisory AUM or 80% Advisory Revenue
Lending – $6,000 lending credits (or $8,000 lending credits for 2016 retro award)

Delta Graduate

Growth

15% revenue growth or $150,000 revenue growth

Jan

2017

Current Merrill Lynch Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC

Merrill Lynch has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 150% and 170%. Additionally, the hurdles in order to meet back-end production goals under the deal are:

· Year 1: Hurdle – 75% of assets

Payout bonus: 50% of production (from same year)

· Year 2: Hurdle – 95% of assets

Payout bonus: 40% of production (from same year)

· Year 3: Hurdle – 115% of assets

Payout bonus: 30% of production (from same year)

· Year 4: Hurdle – 125% of assets

Payout bonus: 25% of production (from same year)

· Year 5: Hurdle – 155% of assets

Payout bonus: 25% of production (from same year)

Jan

2017

Current Stifel Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC

Stifel has marketed a recruitment deal to financial advisors which consists of an upfront cash payment of 100% +.

Nov

2016

Pair Leaves UBS Financial Services to Join Raymond James

From the Desk of Jim Eccleston at Eccleston Law LLC:

On October 25, 2016, advisors Harold MacFarland and Tadd Hicks left UBS to join Raymond James in St. Louis, Missouri. The team has $220 million in assets under management.

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. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Feb

2015

Ameriprise Profits Rise But with Fewer Financial Advisors

From the Desk of Jim Eccleston at Eccleston Law Offices:

In 2014, Ameriprise Financial’s wealth management reported $792 million in profits, up 33% year-over-year. Total client assets in the last quarter in 2014 for the firm’s wealth management division rose to $444 billion, a 9% increase year over year. Total revenues for wealth management grew 11% year-over-year, rising to $1.2 billion from $1.1 billion.
However, the firm’s financial advisor headcount was down. The number of employee advisors fell to 2,083 from 2,205 for the year-ago period. The ranks of independent advisors grew year-over year, rising to 7,589 from 7,511.
Retention rates were slightly down. For employee advisors, the figure fell to 91.2% for the fourth quarter in 2014 from 92% for the same period a year ago. For independent advisors, the rate dropped 94.5% from 94.7%.
There was some consolidation in the independent advisor channel, as some advisors prepared for retirement by selling or transitioning their practices to other advisors.
Productivity remained strong across both channels, but especially among new hires.
In a press release, the firm said recruiting remained strong as Ameriprise picked up 73 experienced advisors across both channels during the quarter. Productivity grew 13% year-over-year, rising to $496,000 in operating net revenue per advisor.

The attorneys of Eccleston Law Offices 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.

Aug

2014

Merrill Lynch Advisors Rumored to Leave the Firm in Large Numbers

From the Desk of Jim Eccleston at Eccleston Law Offices:

Merrill Lynch still is struggling with the issue of retaining advisors. In 2007, Merrill Lynch had a total of 16,740 financial advisors. However, today it has a total of 13,276. That equates to a loss of nearly 30% since 2007.

Merrill Lynch advisors prefer to transition to two specific platforms: wire-house rivals and the growing RIA/hybrid models. UBS, HighTower, Steward Partners, Wells Fargo and Raymond James have benefited the most from the Merrill issues.

The expiration of retention bonuses has undoubtedly freed many Merrill Lynch advisors. That said the new firms will present forgivable loans and employment agreements that should be reviewed by competent legal counsel, so that the advisors aren’t “jumping from the frying pan into the fire.”

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.