Banks

Bank Advisors will be in employees of the bank in most cases, although some may partner with Independent Advisors who have outside businesses.

Many banks will offer a marginal base salary to subsidize the commissions earned by their Advisors. Payouts on client revenue will typically be between 40-50%.

Banks may also pay bonuses based on the Advisor reaching commission goals, as well as referral bonuses when a client uses other products offered by the bank.

Although Banks may offer signing bonuses which may be lucrative in some cases, they are not typically considered to be a competitive recruiting advantage for banks.

Banks will typically own client relationships that were generated by bank referrals as well as new relationships the Advisor cultivated themselves while employed. Similarly to wire houses, however, accounts that join an experienced Advisor transitioning to a bank will typically be exempt from non-compete clauses in the contract.

Most Advisors won't be able to use their own branding and will be restricted to using only pre-approved marketing materials from the bank.

• Most business opportunities for the Advisor will be provided from internal referrals from the bank, easing the pressure on the Advisor to generate new business themselves.

• Banks are one of the few business models that typically include a base salary as part of their compensation, although this will still make up less than half of the Advisors expected compensation.

• Employee benefits and turnkey workspace.

• Often limited product offerings as Advisory and brokerage tend to not be the key business focus of banks.

• Difficulty to retain client relationships if the Advisor leaves the bank.

• Compensation structure may change with no input from the Advisors.

• Limited ability to market and promote as the Advisor will be considered part of the local branch team.