Regional Firms Are Becoming More Attractive as Wirehouses Lose Competitive Edge

Posted on April 1st, 2019 at 11:56 AM
Regional Firms Are Becoming More Attractive as Wirehouses Lose Competitive Edge

From the Desk of Jim Eccleston at Eccleston Law LLC:

Recently, regional firms such as Raymond James, Stifel, Ameriprise, and Janney Montgomery Scott have become a favored destination for many successful wirehouse advisors who have transitioned away from the wirehouses. 

In a recent article published in InvestmentNews, recruiter Danny Sarch highlighted a few reasons why wirehouses are shrinking, and regional firms are becoming more attractive for advisors seeking change.  

To begin, during the early days of computers, many wirehouse advisors avoided regional firms because they believed it would compromise the service of products. However, because of the current speed of the internet and the cloud revolution, advisors have the same capabilities with regards to technology no matter if employed by a wirehouse or a regional firm.

In addition, the article pointed out that many advisors find that wirehouses no longer place a priority on helping them solve operational problems. In contrast, regional firms, which are usually operated with offices only a fraction of the size of wirehouses, are more likely to give individual attention to operational issues advisors face on a daily basis.

Lastly, while wirehouses are cutting payouts and providing complicated compensation plans to advisors, regional firms’ compensation plans are generally simple, lucrative and rarely subject to change.

Furthermore, since Morgan Stanley and UBS have withdrawn from the Broker Protocol, regional firms now appeal to advisors looking to transition and not be locked into a non-protocol firm.

The attorneys at Eccleston Law assist advisors in their transition to regional firms, negotiate their employment and other agreements, and defend advisors when firms file suit.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, raymond james, stifel, ameriprise, wirehouses, morgan stanley, ubs, regional firms

Return to Archive



I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.


September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.