The financial services industry is witnessing a noticeable trend: advisors increasingly are leaving their long-standing teams, including family members, to pursue new opportunities. As reported by AdvisorHub, high recruiting offers, personality clashes, and the allure of better prospects have led to the breakup of nearly 20 advisory teams this year alone.

This shift challenges the decade-long efforts by major firms like Merrill Lynch, Morgan Stanley, and UBS to promote corporate teaming among their advisors. Industry recruiter Phil Waxelbaum observes, "There is a palpable collapse of corporate teaming initiatives. We're definitely drifting back to teaming as a function of advisor desire rather than corporate motives."

While many advisors still work in teams—46 percent overall, with the number rising to over 94 percent among those managing $500 million or more—recruiting bonuses have reached staggering levels - over 400 percent of trailing-12 production (T-12) for top producers.

As advisors age, the decision to stay or go becomes even more complex. Senior advisors nearing retirement may prefer a sunset deal, while their younger colleagues seek new opportunities.

The impact of these splits is often underreported. Industry recruiter Rick Rummage told AdvisorHub that more than half of teams eventually split, with many doing so internally without public attention.

Even with the challenges, firms often are able to retain assets when teams split. A senior Morgan Stanley executive explains that when some advisors stay behind, the firm manages to retain a significant portion of the clients and assets, contributing to a peak in retention rates.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.