As this article is being constructed, First Republic Bank has lost 47 total advisors out of its wealth management division; out of roughly 200 total. In the past 40 days departures have greatly accelerated and more than 25% of the total wealth management professionals at the firm have decided to do business elsewhere.
More than just a fire sale, big sign on bonuses from competitors, and obvious questions about FRB’s long term prospects (or short term for that matter) – there is another dynamic at play rarely seen in wealth management recruiting.
Large FRB teams are being begged by their own clients to leave the firm. Proof that relationships matter, and more often than not clients are committee to their advisors rather than the firm that custodies their assets, yes, FRB clients want their advisors to move to greener pastures.
Those conversations are so rare that it is making it very, very easy for teams to do due diligence quickly and decamp for the likes of UBS, RBC, Morgan Stanley, and Rockefeller within two to three weeks.
Rumors continue to swirl that some of the largest teams at First Republic are on the brink of moving to new firms. Teams with stated annualized revenue numbers from $25M – $40M and billions of assets in tow. Teams that have left up to this point have ranged in the $3M – $16M space; huge wins for their welcoming firms.
The demise of First Republic Bank as a depository institution is well documented at this point. The financial press has dubbed FRB as a zombie bank with limited ability to generate profits for the foreseeable future and potentially on the brink of FDIC receivership.
All of the above realities have put clients in a position to push advisors to effectively transfer and ACAT their funds to new, perceived safe institutions.