- On November 16, 2017
Advisorbox has stepped up in the time of need for those advisors who no longer want to remain at Morgan Stanley. We recognize that this segment of advisors is a minority of the Morgan Stanley advisors but it is in the hundreds and may turnout depending on a host of pending events, that it could be thousands.
If short-term attrition over the next 12 months hits 10% to 20% of 15,759 Morgan Stanley advisors, that is 1500 to 3100 advisors. This is a much bigger headcount than most all regional firms have in total.
Morgan Stanley has been losing about 400 advisors a year recently which is about 2.5%. This is during Protocol. Morgan Stanley is betting this number goes down in their Non-Protocol new world. But will it? It seems more likely it will accelerate. We see a small percentage of those 400 advisors leaving each year because they will just need to implement an Announcement transition strategy than a Protocol strategy.
If about advisors typically bolt from MS each year how hard would it be for that number to double or triple over the next year or two? We know from our conversations with Morgan Stanley advisors that there is an increased number of advisors who weren’t necessarily too unhappy at Morgan Stanley before, that is now very unhappy that Morgan Stanley pulled out of Protocol and especially the way the exit was handled.
If things go more the advisor’s way than Morgan Stanley’s in the upcoming Non-Protocol transition legal decisions, if ML and UBS are fairer in how they treat their advisors in a future possible exit, the wedge dividing executive leadership at Morgan Stanley and the advisors will widen not narrow.
Posted by Darin Manis
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