UBS Flagship Team Set To Exit; Powerhouse Team Will Be An Eye Opener For Firm Brass

UBS is bracing for significant advisor losses throughout 2020. At least they better be. The aggressive comp grid changes provided the perfect cover for advisors and teams on the edge when considering a move to a new firm, to hit the bid.

**There is a $14M dollar team we do not represent that is leaving and there’s more to come.**

The first fruits of UBS’ mistakes is about to start hitting the tape.

In a discussion with a highly regarded senior executive, that is plugged in across the industry, the expectations for a coming wave of UBS departures is significant. So much so that one of the flagship teams in the country’s center is ‘dotting i’s and crossing t’s’ on their transition.

“This isn’t a surprise, as UBS was already vulnerable before the flood gates finally opened. It is nearly impossible to quantify the scale of the company grid miss-step and how quickly the fallout has developed.”

”Expect three different teams to be in the news in short order, one of them will be an eye opener on the East Coast. And you aren’t going to have to wait very long for it to hit the tape. Not going to give it completely away, but it’s a big one.”

As the conversation continued and went off, more background details were shared. Again, this one will be a big loss for UBS and a huge win for the firm that will be welcoming them.

Brace yourselves folks, it’s about to get litty litty on the recruiting trail.

Need to make a move? We make it easier, faster, and guarantee a bigger transition package. Contact us for more information.

UBS Comp Changes Shock: ‘Biggest Grid Stretch I’ve Ever Seen’

UBS thinks it’s a good idea to play with fire. That’s the best explanation we can come up with when evaluating the 2020 comp changes that have been leaked. In this sense, playing with fire is a catchy way of saying they feel comfortable going to war with their own advisors.

The changes that are set to be announced (or maybe there won’t be if the backlash is as visceral as we think it will be) antagonizes every size of advisor and advisor team. No one seems to be spared.

For the life of us we can’t figure out why UBS is choosing to ignore the first rule of dealing with any wealth management biggest producers – first, do no harm. Nope. They’ve decided they want to double down on advisor losses that have somewhat defined the firm in 2019.

A few details regarding the specific changes:

“The 2020 compensation changes, expected to be announced to the firm’s more than 6,000 U.S. brokers on Tuesday, will raise hurdles from the bottom to the top of UBS ranks, with particularly steep rises for mid-level and top producers.”

“Brokers who this year retain 39%, 42%, 49%, and 50% of what they raise from customers will have to produce $200,000 more in the new plan to hit the comparable 2020 production bands, according to summaries of the plan reviewed by AdvisorHub.”

So if you are reasonably proficient at math, that looks like anywhere from a 10-30% increase in grid expectations just to receive the same % payout. Every UBS advisor is getting a kick in the crotch as a holiday gift.

And if you think that larger teams are better off, think again…

“In addition to raising the bar for individual brokers, UBS Wealth Management Americas is raising requirements for team payouts. Teams must generate a combined $6 million and have average FA production of $1.2 million to qualify for the “combined” grid payout of at least 48% to all members. That’s up from a team production minimum of $5 million and average FA production of $1 million in the 2019 plan.”

You can expect advisors and local management to be righteously indignant about these changes. And you can also expect UBS advisors to spend more time on the phone with recruiters in the next 3 months.

Seriously, who made this decision? It feels reckless given that UBS lost nearly 5% of its advisor force to competitors in 2019. Expect more commentary and fallout in the coming days and weeks.



Need to make a move? We make it easier, faster, and guarantee a bigger transition package. Contact us for more information.