BISA Magazine - Quarter 3, 2017 - 13

T

he number of financial
advisors (FAs) working in
banks and credit unions
declined by 1.1 percent in
2016, reports consulting
firm Kehrer Bielan. This is somewhat
surprising. Banks are under pressure to
develop new sources of fee income -
including brokerage income - and one
would expect the ranks of bank-based
FAs to be growing, not dropping.
"Disruption
stemming from
the run-up to
implementation
of the Department of Labor's
(DOL) fiduciary
rule, coupled with
intense competition
for quality advisors
from the wirehouse
firms, put a squeeze
on advisor headcount
in 2016," said Kehrer
Bielan in a recent report.
"Banks that own their financial advisors
fared slightly better than banks and
credit unions that work with third-party
financial advisors, but growth was
disappointing across the industry."
The news is not very surprising to
all, however.
"We've seen it [i.e., the shortfall in
recruitment and retention] coming for a
few years," said Kevin Mummau, chief
relationship officer, CUSO Financial Services (CFS)/Sorrento Pacific Financial.

The bank-brokerage industry once
drew extensively on wirehouse training programs - on those advisors
who, for whatever reason, just couldn't
cut it at giant wirehouses like Merrill
Lynch; but those advisors often thrived
in the more nurturing bank environment. During the 2008 financial crisis,
many wirehouse training programs
were eliminated to save money. That
stream of well-trained, (often) very
capable recruits dwindled.

A Squeeze on
Advisor Head Count
The Kehrer Bielan finding came out
of a study group for executives who
manage investment services businesses inside financial institutions.
The group met May 2-3 in Chapel Hill,
North Carolina.
Among bank-brokerage executives
who participated in the study group,
advisor recruitment and retention
remain top concerns, the firm said in
a press release.
"Recruitment and retention of institutional programs and advisors is,
and always has been, the lifeblood
of our industry," said LeAnn Rummel,
president of Cetera Financial Services
(who had not seen the consulting
firm's report).
Rummel said the problem is, "There
are only so many experienced financial advisors to go around, and at
just the same time you have larger

13
BISA Magazine



Table of Contents for the Digital Edition of BISA Magazine - Quarter 3, 2017

Table of Contents
BISA Magazine - Quarter 3, 2017 - Cover1
BISA Magazine - Quarter 3, 2017 - Cover2
BISA Magazine - Quarter 3, 2017 - Table of Contents
BISA Magazine - Quarter 3, 2017 - 2
BISA Magazine - Quarter 3, 2017 - 3
BISA Magazine - Quarter 3, 2017 - 4
BISA Magazine - Quarter 3, 2017 - 5
BISA Magazine - Quarter 3, 2017 - 6
BISA Magazine - Quarter 3, 2017 - 7
BISA Magazine - Quarter 3, 2017 - 8
BISA Magazine - Quarter 3, 2017 - 9
BISA Magazine - Quarter 3, 2017 - 10
BISA Magazine - Quarter 3, 2017 - 11
BISA Magazine - Quarter 3, 2017 - 12
BISA Magazine - Quarter 3, 2017 - 13
BISA Magazine - Quarter 3, 2017 - 14
BISA Magazine - Quarter 3, 2017 - 15
BISA Magazine - Quarter 3, 2017 - 16
BISA Magazine - Quarter 3, 2017 - 17
BISA Magazine - Quarter 3, 2017 - 18
BISA Magazine - Quarter 3, 2017 - 19
BISA Magazine - Quarter 3, 2017 - 20
BISA Magazine - Quarter 3, 2017 - 21
BISA Magazine - Quarter 3, 2017 - 22
BISA Magazine - Quarter 3, 2017 - 23
BISA Magazine - Quarter 3, 2017 - 24
BISA Magazine - Quarter 3, 2017 - 25
BISA Magazine - Quarter 3, 2017 - 26
BISA Magazine - Quarter 3, 2017 - 27
BISA Magazine - Quarter 3, 2017 - 28
BISA Magazine - Quarter 3, 2017 - 29
BISA Magazine - Quarter 3, 2017 - 30
BISA Magazine - Quarter 3, 2017 - 31
BISA Magazine - Quarter 3, 2017 - 32
BISA Magazine - Quarter 3, 2017 - Cover3
BISA Magazine - Quarter 3, 2017 - Cover4
https://www.nxtbook.com/nxtbooks/bisa/2017q4
https://www.nxtbook.com/nxtbooks/bisa/2017q3
https://www.nxtbook.com/nxtbooks/bisa/2017q2
https://www.nxtbook.com/nxtbooks/bisa/2017q1
https://www.nxtbook.com/nxtbooks/bisa/2016q4
https://www.nxtbook.com/nxtbooks/bisa/2016q3
https://www.nxtbook.com/nxtbooks/bisa/2016q2
https://www.nxtbook.com/nxtbooks/bisa/2016q1
https://www.nxtbook.com/nxtbooks/bisa/2015q4
https://www.nxtbook.com/nxtbooks/bisa/2015q3
https://www.nxtbook.com/nxtbooks/bisa/2015q2
https://www.nxtbook.com/nxtbooks/bisa/2015q1
https://www.nxtbook.com/nxtbooks/bisa/2014q4
https://www.nxtbook.com/nxtbooks/bisa/2014q3
https://www.nxtbook.com/nxtbooks/bisa/2014q2
https://www.nxtbook.com/nxtbooks/bisa/2014q1
https://www.nxtbookmedia.com