Family Offices Benefit As Financial Brokers and Advisers Continue Mass Exodus from Wirehouses

Family Offices Benefit As Financial Brokers and Advisers Continue Mass Exodus from Wirehouses

PALM BEACH, FL – (September 22, 2020) – In light of the coronavirus pandemic, a record number of brokers and advisers are departing the major wirehouses such as Merrill Lynch and JPMorgan Chase & Co and instead opting to affiliate with smaller, independent firms that may offer larger payouts. Family Office Networks continues to see evidence of this trend and the resulting benefits to family offices and high net worth private investors.

Among the reasons that brokers are jumping ship is the fact that they are no longer willing to pay for office space and services they no longer require in today’s work from home environment. While JPMorgan called employees back to the office earlier this month citing a decrease in productivity, for example, many advisers are not happy as they prefer flexibility and the ability to serve clients from their home office.

Wealthy clients are also well-poised to benefit from this trend as financial advisers who either own their own firm or are affiliated with smaller firms typically have a greater commitment to fiduciary responsibility since they are not accountable to management and shareholders and are not mandated to sell and produce specific financial products and services. Instead, smaller firms are able to customize client portfolios, based on their own investment philosophies and strategies, to solely benefit the client. 

“Most advisers with less than $75M in AUM will earn more if they are not affiliated with one of the large wirehouses. They often have a hard time running a profitable business and the loss of a client or two can turn the business into one with negative cash flow. We work effectively with RIAs to help them with an exit strategy or strategic partner relationships,” said Andrew Schneider, Founder and CEO of Family Office Networks. 

“When you start supporting clients as an independent advisor, you are able to consider all investments and recommend them without any economic influence, sales targets or firm bias. This substantially increases your value proposition to the client. Wealthy families are becoming increasingly aware of this advantage,” said Max Osbon, Managing Partner of Boston-based Osbon Capital Management. 

“Independent advisors are able to customize their client experience based on mutual interests and a shared long term vision. Once you get over the initial set up hurdle, you are free to support clients without conflicts of interest and in the manner that you know will resonate with their needs. Owner-operators have the authority to craft a truly exceptional client experience,” Osbon continued. 

If you are an adviser seeking a strategic partner and/or exit strategy, please contact [email protected].  

To contact Max Osbon, please email – [email protected]

About Family Office Networks

Family Office Networks is the premier global community for families to share information and intelligence. The team works with a select group of top tier investment managers and sponsors who offer substantial families’ access to stellar investment opportunities in areas such as real estate, venture capital, private equity, and hedge funds. In addition, Family Office Networks shares timely thought leadership on topics related to portfolio management, philanthropy, multi-generational wealth management, compliance and regulation, risk management, insurance, training and education. The website www.familyofficenetworks.com is the hub of Family Office Networks with 200,000 users, including 10,000 family offices, and is a go-to resource for news related to family offices.