Corporate & Securities Law

Lower-Producing Wirehouse Refugees May Find Home In Transitioning To Regional And Independent Firms

By James Eccleston

Recently, Investment News ran an article entitled, "Low-producers to exit wirehouses - Pay cuts likely to force thousands out the door."  According to the author, Dan Jamieson:

There will be a large migration of low producers from the wirehouses this year, industry observers predict.  While brokers at all production levels have been leaving to escape the turmoil at the big firms, cuts in pay for less productive brokers are expected to force out many representatives who produce less than $300,000.  Even $400,000 and $500,000 producers will be looking for new homes as they feel less welcome at the big firms, observers said. 

Production levels vary by firm, but an average 10% to 20% of reps at the major firms could be under $300,000, said a compensation consultant.  As a result, several thousand low-producers are feeling the effects of lower payouts this year.  And it's predicted, there "will be a tsunami" of movement out of the major firms this year and in the coming years.

Regional and independent firms are the likely new homes for many low-producing refugees.  But some regional firms are getting pickier.

Attorneys at SNSFE negotiate the transition deals, ensuring smooth transitions, complying with all applicable rules and regulations and the protocol if applicable.  Feel free to contact attorneys at SNSFE.

Source:  Investment News

Full post as published by FinancialCounsel on February 18, 2009 (boomark / email).