It’s challenging to keep up with the dizzying number of mega-advisor moves in recent months, particularly those to and from the four wirehouse firms (Morgan Stanley, Merrill, UBS, and Wells Fargo). For example, one firm may lose a $10 million team the same day they win a $7 million team from another firm … and the game of musical chairs marches ever on.
This movement has led many top wirehouse advisors—even those who feel well-served at their current firm—to wonder about the state of the industry landscape. In short, they’re asking, “What does all the movement mean for the future of the wirehouse channel?”
To answer that question, let’s start with a quick multiple-choice quiz. Which of the following statements is true:
A: The wirehouses are losing considerable market share to regional, boutique and independent firms, and are no longer the default destination for top teams. Advisors at the wirehouses are, as a whole, the least happy subset of advisors in the industry,
B: The wirehouses are home to many of the most successful advisors in the industry. They offer scale and capabilities that few others can match, and their brands are the most elite on the Street. Though they have lost some market share to other industry channels, they remain, by far, the most productive, largest and most influential firms.
By now, you may have guessed that both statements are factual. So, what does that mean if you are a top wirehouse advisor in 2025? Are independent, boutique and regional firms sure to overtake wirehouses as the premier destinations of choice for elite teams, or is the truth more nuanced? Here are four critical considerations:
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The fact that some advisors are leaving the channel is a good thing. Unfortunately, big firms are, by their nature, slow, bureaucratic and stubborn. For meaningful changes to occur, advisors often have to “vote with their feet.” We have seen examples of this in the past with changes to compensation plans or pressures to cross-sell products. Advisors push back, but firms don’t generally make meaningful changes until attrition forces them to do so. This might mean that advisors who stay may benefit from a better experience, spurred partly by those who opted for change.
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How firms react next will be most telling. The above thinking assumes that firms will “course correct” when they see significant advisor attrition and/or difficulty recruiting new advisors. But what if they don’t? What if they operate without regard to advisor sentiment or client experience? As other firms and models become increasingly legitimate alternatives to the wirehouses, the single greatest threat to the wirehouse model is, in fact, the wirehouse model itself. For now, they offer enough good that a critical mass of advisors will put up with the bad. But if that calculus continues to shift, we may yet see a day when the wirehouse model faces a more serious reckoning. Advisors often ask us: Does wirehouse leadership even care about the number of departures? Are they celebrating the reduction in force behind the scenes because ultimately it will help with profitability? The answers to these questions will dictate the future of the space.
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Independence is right for some and a bridge too far for many. Advisors commonly feel pressure to consider independent options because it feels like the hot “flavor of the day.” Readers of our content are aware that we are staunch supporters of the independent space, but it’s not right for everyone. We believe that the biggest firms are, and will continue to be, the right homes for many advisors: Offering stability, security, familiarity, brand and turnkey solutions that only the wires can truly tout.
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Regional and boutique firms are the clear winners. As a corollary to point number 3 above, since independence is a bridge too far for many, and the thought of another wirehouse is not that compelling either, many wirehouse advisors who feel they need to make a change end up in the regional or boutique space at firms like Rockefeller, Raymond James, and RBC. These firms have become the go-to destination for advisors who want the middle ground of a known brand and a fully built platform, but with a flatter and more advisor-friendly culture than the wirehouses.
At a conference a few weeks ago, I heard a speaker talk about how the wirehouses could save themselves from losing significant advisor share in the years ahead. The wirehouses are imperfect, but I am not convinced they need saving.
Yes, elite advisor teams are increasingly opting for regional and boutique firms, and independent platforms that offer more freedom, personalization, and control. But, the notion that advisors can no longer serve clients, grow their business, or earn a fair wage at a wirehouse is also overblown. It’s how the wirehouses react from here that will be most telling: Will they continue to give in to cost-cutting and margin pressure, or will they prioritize client service and advisor well-being?
#Rethinking #Role #Wirehouses