Morgan Stanley at Deutsche Bank Conference Notes

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Andy Saperstein – Co-Head of Wealth Management

No fee compression in a holistic relationship

“So far just empirically, we’re not seeing fee compression. Clearly, the trends in Wealth Management — the trends in many other aspects of financial service clearly, the trends such that we have to be concerned about decompression. But the reality is that our clients come to the advisors not to buy specific products for a price, but they come to advisors for advice around their financial well being and helping them to achieve their goals. So when we talk about what we’re selling, we talk about the value proposition. When we talked about the value or advice what an advisor brings, we’re careful to make sure that we continue to define it as advice to help a client meet their financial goals. So what you’ll see coming out of our organization going forward is a lot of moving towards, I briefly touched on the goals based planning and making sure that we’re always delivering that holistic type of Wealth Management advice to the client, because that really doesn’t have any fee compression on, if anything, that kind of a price point is quite acceptable. As soon as you start thinking about selling a particular product, there for a product, then that’s when the fee compression starts to kick in.”

Recruiting and attrition is at an all time low

“So attrition levels are at an all time low, I think that’s probably roughly true in the industry. And so much is what I said earlier is that recruiting has come down over the years and is also at an all time low. And so I expect that attrition will remain low for the foreseeable future as well.”