Several industry insiders for years, even a decade, have predicted the potential wirehouse exits from Protocol if the rapid expansion of Protocol firms continued, causing Protocol to backfire on the wirehouses. This has been a on and off again topic amongst recruiting circles for years.
New predictions are as common as old ones. Old predictions tell us there are not too many people in our industry with crystal balls. This is because crystal balls aren’t reliable and frequently break. You never know if you have the near-term future ball or the long-term future model because they don’t come with labels or instructions. The glass also gets unexpected smudges on it, that won’t wipe clean, making the view of the future blurry for some and completely clouded for others. Besides, a crystal ball is an inanimate object, you can’t trust inanimate objects.
Who can you trust with accurate predictions?
Carnac the Magnificent
If you are wondering who Carnac the Magnificent is then ask any person in your office with gray hair. The more the gray, the more they likely remember.
I hold in my hand the envelopes. As a child of four can plainly see, these envelopes have been hermetically sealed. They’ve been kept in a mayonnaise jar on Funk and Wagnalls’ porch since noon today. No one knows the contents of these envelopes – but I, in my mystical and borderline divine way, will ascertain the answers having never before heard the questions.
Holding Envelope #1 to my head…Answer: “NOVEMBER”
The question inside: When is UBS pulling out of Protocol?
Holding Envelope #2 to my head…Answer: “DECEMBER”
The question inside: When is Merrill Lynch pulling out of Protocol?
Carnac makes the prediction:
UBS exiting protocol in November, Merrill Lynch exiting in December
Wow Carnac, there is only a week left in November, maybe he should have put both in December but we won’t question his borderline divine ways until we see if he is right or not.
Seriously though, it doesn’t take a crystal ball or Carnac the Magnificent to see what is coming soon for UBS and Merrill advisors. Your firms are leaving Protocol. If you don’t leave before their announcement and notice deadline, you won’t be leaving under Protocol. You’ll be leaving later under Non-Protocol non-solicitation agreements that you signed, but never thought they would actually be applied.
Morgan Stanley advisors had a four-day notice, what will UBS and Merrill Lynch advisors get? The MS advisors who had already spoken to other firm(s) and who was already initially vetted, were able to leave within the few-day notice they received. Those who were considering leaving, but kept putting off doing their due diligence on other options, got stuck.
Carnac’s prediction may not be exactly right, but it is happening soon. You already know it’s coming.
For advisors who love being at UBS and Merrill Lynch and never plan on leaving, then there is nothing to really worry about.
However, if you have been thinking about leaving your wirehouse for a regional or independent channel model, there is no time to waste. We just went through this with Morgan Stanley. So many advisors caught and trapped by the short notice.
Find your employment agreement, get your production numbers ready, get ready now.
Consider calling Advisorbox today to discuss your goals and preferences and we’ll share our open architecture of firms, structures and model options. Get positioned so when the Prexit announcement does come, you will have the liberty of choice. You will have options.
You may stay, you may not, but preparation now will give you the ability to still leave under Protocol if that becomes your decision. Prediction + Preparation = Choice.
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