Wirehouses Have Seen a Slow Down in Breakaway Brokers in 2019

Posted on May 8th, 2019 at 5:14 PM
Wirehouses Have Seen a Slow Down in Breakaway Brokers in 2019

From the Desk of Jim Eccleston at Eccleston Law LLC:

The number of financial advisors breaking away from their firms has slowed during the first three months of this year. According to InvestmentNews, only 94 financial advisors have left the wirehouse channel in the first quarter, which is a 36% drop from the 147 breakaways recorded in the fourth quarter of 2018. The stock market correction is cited as one of the main reasons why there has been the lowest breakaway activity since the second quarter of 2017.

However, this trend may not last long. Wirehouses still face challenges due to aging advisor demographics seeking liquidity, a mature economic cycle, and plentiful alternatives in the independent channel.

Notably, and by comparison, there has been a substantial increase in merger and acquisition activity among the RIA community. According to InvestmentNews, there were 49 RIA acquisitions during the first quarter, the highest level in the last six years. Furthermore, it is estimated that by the end of 2019, there will be an all-time record of 196 RIA acquisitions.

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, breakaway brokers, investment news, stock market, ria

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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