Turnover at the wirehouses has accelerated in the current market. In the first quarter, UBS and Wells Fargo Advisors were net winners of advisors, but every firm lost heads in the second quarter. (Granted, Wachovia/Wells Fargo just lost one.) UBS seems to have benefitted handsomely from the mergers of its rivals with big banks. “UBS was seen as the only stable firm,” says one recruiter. “There was no merger happening. Plus, UBS was offering a competitive deal at the time. They had a hot deal and it was a hot place,” he says. As for the big loss at Morgan Stanley Smith Barney in the second quarter, the recruiter says while the number is significant the devil is in the details. “They are trying to weed out low end producers anyway. If a majority of those advisors leaving are under a certain level of production, then it's a different story.”
