CEO Lester P. Botkin (L) and Ovidiu Manciu (C) hang a painting of Augusta National Golf Club's "Amen Corner" while son Lester H. Botkin watches in his new office in McMurray, Pennsylvania, March 20, 2015. REUTERS/Stephanie Strasburg
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If a brokerage learns that someone intends to leave, it often dismisses the broker so the bank can try to retain clients.They represent growing numbers of brokers who are leaving big bank brokerages, such as Morgan Stanley, Bank of America's Merrill Lynch, Wells Fargo Advisors and UBS Group AG to branch out on their own.The big four brokerages lost nearly 7 percent of their market share to independent firms between 2008 and 2013, according to Boston-based research firm Cerulli Associates, a leading global analytics firm. In the next five years, Cerulli expects independent advisory firms to surpass the big brokerages in their control of the market, according to a survey of 7,000 brokers working at firms across the industry.The Botkins also considered leaving Morgan Stanley for another big bank that offered them $5 million over 9 years, including a $1.6 million up-front payment.But more brokers are opting to go independent because many brokerages have raised clients' fees and minimum balances and have pressured brokers to lend more.Lester P. Botkin said that in recent years, Morgan Stanley had pressured brokers to charge clients more than 1.25 percent.
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