Last week, Morgan Stanley raised the revenue thresholds that many of its 15,000 advisors must meet to get the same payout percentages in 2020 that they received this year. The wirehouse increased thresholds by about 10%, effective April 1. The targets of the higher revenue thresholds are advisors generating less than $5 million a year, while the thresholds for advisors generating more than $5 million are expected to remain unchanged. How will this tougher target impact the advisors who fall under this revenue bracket?
Will the Higher Revenue Thresholds at Morgan Stanley Lead to Advisor Exits?
The advisors will stay put and work harder to meet the revenue targets.
The advisors will leave Morgan Stanley for another broker-dealer firm.
The advisors will leave Morgan Stanley to form an RIA or join an existing one.
No impact whatsoever. The advisors will continue, business as usual, regardless of revenue targets.