Independent wealth managers struck more big recruiting and M&A deals in 2022 than they did a year ago, to the tune of a thousand more financial advisors and $50 billion more in client assets.
Listed in a slideshow below and compiled by Financial Planning's tracking of company announcements, the 17 largest changes in FINRA affiliation or ownership among independent brokerages in 2022 saw 3,322 advisors and $229.6 billion in client assets find a new home. Last year, the top 17 moves and M&A deals
Besides the familiar names of industry giants such as LPL Financial, Advisor Group, Mariner Wealth Advisors, Creative Planning, Cetera Financial Group and Raymond James Financial Services, a theme of complexity and
Among the largest teams, the increasing "complexity of advice" and the "evolving needs" of advisors and clients often act as the driving factors when large teams change firms, according to Bill Morrissey, the head of the independent channel of Atria Wealth Solutions. High valuations and purchase multiples play a major role for big teams, as well, he said in an interview.
"They're looking out at the landscape, they're looking at the future," Morrissey said. "They want to align with a firm or strategic partners that are going to help them grow."
At least five of the largest deals or moves this year involved broker-dealers shutting down or joining a larger parent company. In a sign of the complicated nature of today's wealth management industry, though, at least two of them gave birth to rebranded brokerage firms whose parent firms view their BD as giving them a competitive edge in a time of accelerating shifts across the field.
To see the rankings of the largest recruiting moves and M&A deals involving independent broker-dealers in 2022, scroll down the slideshow. For last year's list,
Notes: The below figures reflect recruiting and M&A announcements by independent wealth management firms, which don't always disclose every single deal or all of the relevant details and cite numbers that may not be verifiable in every case. For inclusion on the list, the announcement needed to involve a team either leaving, joining or staying in the independent brokerage channel.
Moves and transactions involving only employee brokerages whose advisors are direct W-2 employees or registered investment advisors without any ties to brokerages aren't eligible. The dates of the transitions refer to the technical changes on FINRA BrokerCheck or the SEC's Investment Adviser Public Disclosure website, or the best available information from company announcements and news reports.
Moves or deals that are expected to close in 2023 or haven't yet hit official regulatory databases will need to wait until next year for potential inclusion on the list. That left the impending exit of
