Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

Recruiting Loans Drive Growth in Financial Planning Firms

Posted on September 20th, 2024 at 1:32 PM
Recruiting Loans Drive Growth in Financial Planning Firms

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

Recruiting in the financial planning industry remains a crucial strategy for growth, with major firms like LPL Financial and Morgan Stanley leading the charge by offering substantial recruiting loans to attract advisors.

According to FinancialPlanning, LPL Financial has aggressively expanded its recruiting efforts, growing its outstanding recruiting loan balance from $400 million in 2018 to over $1.4 billion in 2023. Morgan Stanley, despite its former CEO’s claim that the “recruiting game is over”, saw its balance rise to over $4.3 billion in the same period. Industry experts believe these increases are sustainable, as the loans typically pay for themselves if the advisors perform well and remain with the firm.

Revenue growth seems to correlate with high recruiting loan balances, according to industry experts. FinancialPlanning reports that LPL's revenue nearly doubled from 2018 to 2023, and Morgan Stanley saw a 52 percent increase in its wealth management revenue. However, firms that pulled back on recruiting, like Bank of America's Merrill Lynch, experienced slower growth. Merrill Lynch reduced its loan balance significantly after 2017 but recently has resumed recruiting, though its 2023 figures are not yet available.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.