UBS Advisors: A Closer Look
Diamond Consultants, a renowned industry tracker, focuses on advisors with at least three years of experience to exclude trainees and industry newcomers unlikely to handle large Asset Under Management (AUM) tallies. They specifically analyze employees with titles containing “advisor” to exclude those with brokerage licenses but no direct client interaction.
Top Beneficiary Firms
Among the firms benefiting from advisor departures, Morgan Stanley led the pack by recruiting nearly 50 advisors from UBS. Following closely were RBC, Raymond James, Wells Fargo, and Rockefeller Financial. The report suggests that advisors leaving UBS for Morgan Stanley seek stability and a familiar environment, indicating a preference for the wirehouse model.
UBS’s Legal Battles
UBS has become increasingly litigious, pursuing legal action against departing advisors aiming to take clients and assets to competing firms. Recent lawsuits include one against advisors with $1.4 billion under management who left to start Loxahatchee Capital and another against a six-person team managing $1.1 billion who joined RBC Wealth Management. These cases involve UBS’s Aspiring Legacy Financial Advisor (ALFA) program, where advisors agreed to non-solicitation provisions when taking on clients.
Challenges and Hope for UBS
Recruitment woes have added to UBS’s concerns, with only 37 advisors added in the first half of 2025, resulting in a net loss of 122. Despite challenges, Diamond Consultants see potential for UBS, citing its strong brand, investment bank, and top advisors. While Merrill Lynch and Wells Fargo have rebounded from setbacks, the next 6-12 months will be crucial for UBS’s future.
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