Commonwealth Financial Network says it has started a new transition service to try to entice advisors away from wirehouses.
The firm has launched Business Consulting Services, a suite of offerings intended to make it easier for wirehouse advisors to go independent by providing human resources, payroll support, marketing, finance and other services, drawing on both in-house and external resources, Commonwealth says.
The team behind the new service worked with Commonwealth’s transition team to develop a menu of resources with the specific aim of drawing in the growing number of advisors leaving the wirehouse channel, the firm says.
“Advisors don’t all come in with the same needs, so we knew we couldn’t offer a one-size-fits-all service,” Matt Chisholm, Commonwealth’s senior vice president for RIA services and practice management, says in a statement.
“With Business Consulting Services, we’re giving incoming wirehouse advisors the power of choice and control over how they bring their business over — and how they grow going forward — during this important part of their evolution,” he adds.
The new service comes on the heels of Commonwealth’s decision to increase the amount of transition money it pays wirehouse advisors to draw them to the firm.
Commonwealth is now offering roughly 50% more in transition money to wirehouse advisors that go independent with Commonwealth, Andrew Daniels, the firm’s managing principal of business development, said in December.
“Economic transition assistance ends up being coupled with expanded ‘soft landing’ resources, as we help breakaways go from being employee to business owner,” Daniels said at the time.
Commonwealth has enticed a number of advisors to go independent in recent months. Earlier this month, Kramer Wealth Strategies, which had been with Morgan Stanley since 2009, joined Commonwealth. In December, the firm added a team of advisors that had previously managed more than $200 million at UBS.
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