Broker Recruiting Deals: The next shoe that will drop in the financial industry, pushed to extremes by who else?? Wells Fargo.

Wells Fargo’s Broker Recruiting Deals Can Hit 400%, Sommers Says:
https://www.advisorhub.com/wells-fargos-broker-recruiting-deals-can-hit-400-sommers-says/

Broker Recruiting Deals are upfront signing bonuses paid to induce successful Financial Advisors to encourage their customers to move their assets to a new firm, often amounting to anywhere from a $5 to $10M check for an advisor.

Who ultimately pays? The clients. How? The FA has to generate a high level of “sales” in a set # of years in order to “pay back” the upfront bonus.

This is a conflict of interest in its purest form.

Barry S. unintentionally admits the conflict of interest in this article:

“Wells undertakes ‘a full due diligence’ to evaluate if any advisor or team it’s considering offering a recruiting package will deliver a return to the bank” Sommers said.

These oafs, who Charlie hired, are so arrogant that they can barely contain themselves when bragging about their underhanded schemes to exploit customers. It would be comical if it wasn’t so ugly.

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9 replies (most recent on top)

@1tni+1oHiH6cZ

Wait so Wells Fargo tried to profit off their employee 401Ks, how dare they?

Wait so a business is trying to recruit and then be profitable? How dare they

Doesn't WFA loose a lot of recruits? Does this happen after the "package" ends?

@agj+1oHiH6cZ spot on. Call IRA or other departments when needing assistance, and it's someone from India who has no idea what I'm talking about. All knowledgeable US employees are gone, and I'm talking to an Indian about IRAs. And anyone who says they don't have access to complete ssns and other personal identifiers is wrong. And yes, Compliance asks nonsensical questions of FAs, doesn't understand nuance, and all they can do is copy and paste "alerts".

@umb+1oHiH6cZ

Wells started pushing the % higher, after the 2016 scandal, and other firms have eventually been forced to follow to compete. I think we were the first to go above 300%, then 340%, now 400%. There are rumors or jokes in the industry about Wells needing to go above 500% before a broker would be will to come here.

What percentage do other firms offer?

Let’s call it what it is - Bigger recruiting packages are the only way Wells Fargo can lure in Advisors.

Our reputation is synonymous with fraud and customer abuse. We are under a Federal Asset Cap due to widespread and ongoing mismanagement. Our technology is outdated. Our Research is watered down. We don’t have any unique or outstanding products. Our Economic forecasts are wrong. We’re closing down and selling off business lines. We don’t have a clue as to how to serve the needs of the Ultra-HNW. We can’t properly service the FA’s because departments are now short-staffed and have been d-mbed-down. Charlie let go too many employees with experience and institutional knowledge - so good luck to the FAs in getting any help from the Home Office. WFA no longer serves overseas clients. Our Compliance is a pain in their a-s, missing the important points and nitpicking on meaningless minutiae.

I would like to hear a FA explain to his clients why in the he-l it is in THEIR CLIENTS’ best interest to move to Wells Fargo.

Yes, WFA is the only company that offers these bonuses.

Anyone who thinks WF is going to be a good Steward of their money deserves what they get.

Thread regarding Wells Fargo & Co. layoffs

Broker Recruiting Deals: The next shoe that will drop in the financial industry, pushed to extremes by who else?? Wells Fargo.

9 replies (most recent on top)

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