Orange County’s largest broker-dealers trimmed their staffs slightly over the past year amid uncertainties in the financial outlook and changes in the industry.
The 29 firms cut 24 financial representatives over the past year, a 1.4% decrease to 1,659, according to the Business Journal’s annual list of financial advisers/brokers.
The financial industry, in addition to being impacted by fewer advisers used for stock trades, is facing the rise of robo-advisers, whose algorithms provide investment strategy at a far lower cost.
This week’s list ranks broker-dealers, which can include wealth managers, based on the number of registered representatives in their OC operations. A registered representative is a licensed professional who trades securities, such as stocks, bonds and options, on behalf of clients for a fee or commission. Firms must have at least five registered representatives to make the list.
The firms on the list employed about 2,400 people combined in Orange County, up 1.7%.
Merrill Lynch
Merrill Lynch Wealth Management, a unit of Bank of America Corp., moved up a notch to first place, with an estimated 260 registered representatives in OC this year.
Joseph Holsinger, who in March was named market executive for Merrill Lynch in greater Orange County, said the company plans to hire “in excess of 40 financial advisers” locally this year.
Merrill’s OC offices include Newport Beach, Irvine and Seal Beach. Holsinger personally oversees a team of more than 400 Merrill colleagues, including 159 financial representatives who serve OC wealth management clients. The team collectively manages approximately $21.8 billion in assets.
Holsinger said he is impressed by the intensity and client focus of his Orange County team.
“They’re growing at a pace that’s just remarkable,” according to Holsinger.
Merrill aims to further diversify its workforce to reflect the growing Asian and Hispanic local population in OC.
Holsinger has been with the firm since 1993, most recently serving as the market executive for San Diego for the past eight years. He received his bachelor’s degree from the University of Missouri in finance/banking and graduated from the Certified Investment Management Analyst program at the University of Pennsylvania’s Wharton School in 2004.
Morgan Stanley, Etc.
• Morgan Stanley Smith Barney in Newport Beach increased the ranks of registered financial representatives to about 200 in OC this year, claiming second place on the list.
• Wells Fargo Advisors, which reported 174 registered representatives, slipped to No. 3 last year here, after many years holding the top spot.
Like other firms, Wells Fargo is deploying more technology-based applications, such as its Intuitive Investor, an online investment portfolio that provides “the efficiencies of digital investing and the benefit of talking with a Financial Advisor when you have questions,” according to the bank’s website.
• No. 5 Newport Beach-based UBS Financial Services Inc. saw a drop of 43% to 106 financial representatives in Orange County.
• No. 7 Raymond James Financial Services Inc. in San Juan Capistrano picked up 10 more representatives to a total of 82.
• Tied for last place, No. 28, were Optivest Wealth Management in Dana Point and B. Riley FBR Inc. in Costa Mesa, with five registered financial representatives each in OC.
