UBS Warns of Increased Advisor Departures Following Compensation Overhaul
From the desk of Jim Eccleston at Eccleston Law
UBS Group AG executives cautioned that the firm may see a rise in advisor departures this year due to changes in its 2025 compensation plan. According to AdvisorHub, the firm acknowledged that these exits temporarily could slow net new asset growth but emphasized that the long-term strategy aims to align financial advisor incentives with UBS’s broader wealth management goals.
As part of its compensation overhaul, UBS eliminated a lucrative teaming bonus that previously set it apart from competitors. Tuckner noted that certain features of the prior plan were “off market” and that the firm sought to bring its structure more in line with industry norms. UBS also reduced rates on its core pay grid, with more significant cuts for lower producers, and announced plans to stop compensating advisors for ongoing revenue from mutual funds in brokerage accounts.
UBS’s Americas division, which includes the U.S., Canada, and Latin America, reported that its advisor headcount dropped below 6,000 for the first time, declining by 2.1 percent to 5,968 advisors in the final quarter of 2023. Industry experts noted to AdvisorHub that UBS’s transparency about potential attrition is unusual, as firms typically avoid publicizing advisor departures.
The compensation revamp is part of a broader effort to enhance UBS’s profitability in the U.S. The firm restructured its wealth management division by reducing management layers and consolidating its field leadership into four regions. AdvisorHub reports that UBS is also expanding its internal client acquisition channels, including plans to double headcount at its Wealth Advice Center and grow its workplace wealth division.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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