Advisor Recruiting Surges in 2025 as Industry Movement Reaches New Highs
From the desk of Jim Eccleston at Eccleston Law
Advisor movement across the wealth management industry accelerated sharply in 2025, with 11,172 experienced financial advisors changing firms, according to reporting by Wealth Management citing the latest Advisor Transition Report from Diamond Consultants. That figure reflects a 16 percent increase from 2024, when 9,615 advisors transitioned.
Wealth Management reports that Diamond Consultants had projected advisor movement would exceed 10,000 in 2025, and the data confirmed that forecast. The report shows that attrition rose significantly compared to the prior three years, when annual movement remained between 9,000 and 10,000 advisors. The firm noted that total movement likely exceeded reported figures because it tracks only experienced advisors with at least three years in the industry.
The report also highlighted the scale of team transitions. According to Wealth Management, 54 teams managing at least $1 billion in assets moved firms in 2025, including 29 teams departing from wirehouses. While many transitions involved independent advisors moving between firms, larger and more sophisticated teams also made significant moves.
Wealth Management points to OpenArc Corporate Advisory as a notable example. The $129 billion Atlanta-based team left Merrill Lynch to launch an independent registered investment advisor with support from Dynasty Financial Partners.
Jason Diamond, president of Diamond Consultants, identified several factors driving elevated advisor movement, according to Wealth Management. Industry consolidation played a significant role, particularly LPL Financial's acquisition of Commonwealth Financial Network. Diamond explained that acquisitions often lead to advisor departures on both sides of a transaction, contributing to increased attrition. He also noted that the deal prompted larger independent firms to enhance recruiting packages, which further accelerated advisor transitions.
Wealth Management also reports that UBS experienced notable advisor departures following compensation changes and broader cost-cutting measures. According to the report, UBS saw 318 experienced advisors depart, offset by 75 additions.
Despite the surge in 2025, Diamond does not expect this level of movement to continue. As reported by Wealth Management, he anticipates that advisor transitions will return to a range of 9,000 to 10,000 annually.
Looking ahead, Wealth Management reports that Diamond identified private equity as a key driver of future recruiting trends. Private equity firms and private equity-backed registered investment advisors are expected to increasingly recruit and acquire wirehouse teams directly, potentially bypassing the traditional path where advisors first move to independence before selling their practices.
Wealth Management further notes that artificial intelligence will influence advisor movement as firms compete on technological capabilities. Diamond suggested that some advisors may choose to monetize their practices sooner as they assess the potential risks associated with evolving technology.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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