Morgan Stanley Sees Drop in Number of Financial Advisors

Posted by adaniels in Blog on October 30, 2012

Morgan Stanley announced that it had lower numbers of advisors as of 2012’s third quarter, but with slightly higher financial advisor productivity. WealthManagement.com revealed that the firm now has 16,829 advisors, down 1 percent from the previous quarter and 5 percent from this time the year before.

In comparison, Wells Fargo and Merrill Lynch, said that their head counts have stayed flat in the previous quarter. Scott Smith of Cerulli Associates told WealthManagement.com regarding Morgan Stanley that “they’re mucking along, but with 16-17,000 advisors, it’s just tough to recruit to fill natural attrition and retirement.”

In addition, Morgan Stanley said that they were purchasing back Citigroup’s 14 percent share in the company. Morgan Stanley also shed Smith Barney from its name. The Citigroup purchase would be $13.5 billion at 100 percent valuation. The firm also said that it would buy Citigroup’s remaining 35 percent share in the company by 2015.

Morgan Stanley announced that its FAs saw their revenue per advisor go up this quarter. The assets under management per advisor increased from $101 million to $105 million.

James Gorman, the company’s CEO, said that “a key to our future is the increased contribution of our wealth management to our revenue, profitability, returns and funding stability.”

Written by Lisa Swan

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