UBS has significantly stepped up efforts to keep client assets instead of watching them depart with advisors who jump ship to other firms or independence late in their careers. Now, in return for giving other UBS advisors their clients, FAs who retire will be able to receive payouts of up to 230% of their annual production, The Wall Street Journal reports.
The new program, called Aspiring Legacy Financial Advisor, or ALFA, is open to U.S. advisors who have worked at the Swiss bank for at least five years. The payouts depend on the advisors’ length of service, total production and net new assets they brought in during the last few years, according to the Journal.
Retiring advisors who participate can remain part of the client-transition process for the next two years. They will receive payouts during the following five years for accounts they give to other UBS advisors.
The firm’s previous program, in place for the past six years, offered advisors as much as 180% of annual production when they retire, provided they had worked at UBS for at least a decade, according to the Journal.
In 2013, Merrill Lynch updated its program to allow as much as 192% of annual production when advisors retire, according to the Journal. Wells Fargo lets retiring advisors work out details with internal colleagues who receive their books of business. At Morgan Stanley, retired advisors can share payment with colleagues who receive their clients.