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UBS's Big Change in Comp Plans is No Change At All?

September 14, 2018

Wirehouse UBS Wealth Management is keeping its financial advisors’ compensation essentially the same next year, according to an internal document seen by InvestmentNews.

Moreover, UBS’s advisors will have more flexibility in how teams pay their members’ bonuses and the firm will no longer cap bonuses tied to new households, according to the publication. Currently, UBS’s brokers can earn up to 50% payout on fees and commissions, and advisors retiring from the business can sell their books to UBS for up to 300% annual production, InvestmentNews writes.

What’s more, UBS is steering clear of its plan to link broker bonuses to non-solicitation requirements, according to the publication.

The firm included a clause tied to its brokers’ 2017 bonuses that prohibited them from soliciting clients for 12 months after leaving the firm, AdvisorHub reported in February.

Shortly after, UBS then changed its mind and said it would link brokers’ 2018 bonuses instead, according to InvestmentNews. But now those bonuses will remain the same, with cash and stock deferred over six years, according to the memo seen by the publication.

But not everyone’s convinced UBS will not try something similar again.

"The non-solicit could happen at UBS but just not be linked to the bonus,” Casey Knight, executive vice president and managing director at recruiting firm ESP Financial Search, tells InvestmentNews. “UBS left the protocol for a reason."

UBS followed Morgan Stanley late last year in pulling out of the Protocol for Broker Recruiting, which allows departing advisors to take some client data with them without the threat of lawsuits, as reported.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.