Article featured in Financial Advisor IQ on August 14, 2018
Wirehouses once drew financial advisors in part by their brand reputation and credibility, Shad Besikof writes in ThinkAdvisor. But affiliating with Morgan Stanley, UBS, Merrill Lynch and Wells Fargo no longer holds the same cachet, making the independence model that much more appealing, he writes.Negative publicity in recent years -- from the 2008 Wall Street failures to the “recent cringeworthy headlines” -- has even made these wirehouse names something of a liability, according to Besikof, president and COO of TruClarity, which offers turnkey solutions to financial advisors going independent.
UBS was involved in the Libor manipulation scandal, while Wells Fargo suffered a major blow to its brand by the 2016 revelations that its employees opened millions of unauthorized debit and credit accounts, he writes.
A recent Bloomberg poll found that 69% of Americans don’t trust Wall Street executives, according to Besikof.