Advisors who are open to switch jobs can use a $10 app to keep up with openings at other financial institutions.
The AdvisorHub app for iPhone and Android devices, which debuted Jan. 21, provides details about compensation and transition bonuses for financial advisor jobs at banks and wealth management firms. Such data tend to be cloaked in cover of darkness, partly because financial advisors and the firms that hire them sign nondisclosure agreements.
"If I'm at JPMorgan and I want to look at Wells Fargo, I'll download the app and look at what Wells Fargo" offers, says Andrew Parish, chief executive at AdvisorHub, a unit of the wealth management recruiting firm Axiom Consulting Group in Columbus, Ohio.
"I want to look at what they might pay me to take my client relationships over to their organization, as well as their overall compensation and payout schedule," says Parish, who characterizes the app as less risky than making phone calls.
Parish gets weekly updates on new positions at big banks through relationships with people in the recruiting and compensation departments in those firms, including Morgan Stanley, UBS and Merrill Lynch. Because his firm recruits in the banking and wealth management sector, he gets a close look at the deal specifics as he negotiates contracts.
Are the big banks happy about this new app, or do they have reservations about a tool that makes it easier for their highest performing advisors to leave?
"I have yet to get any negative commentary," Parish says.
"Recruiting has been around forever, so if you want to leave, you can," he adds. "If you want to talk to a recruiter and find out the information, you can do that. There's risk with that, because you're doing it over the phone or having to take a meeting that somebody might see, as opposed to being able to do the initial due diligence on your own."
There are about 800,000 advisors in the United States with Series 6 and Series 7 licenses, he says. The app "may spread out further than that, to wholesalers or product providers that then market to those registered folks; this could be a relationship building tool."
AdvisorHub, which has about 300,000 advisors in its database, comes at a time when corporations are finding that applicants want to search for opportunities via smartphones.
The app's $10 charge is meant to provide privacy and deter outsiders who are merely curious about compensation. "It's a barrier to entry," he says. "We're not going to get the same people who are downloading Angry Birds."