Stifel to Divest Independent Brokerage Division to Equitable Advisors

Stifel Financial to Close Independent Brokerage Books

Stifel Financial has decided to shut down its independent brokerage division after experiencing several fluctuations over the years.

Four years back, in an attempt to revitalize its business, Stifel opted to separate its Stifel Independent Advisors and create an independent brokerage firm known as Equitable Advisors, according to insiders.

The SIA division consists of around 120 advisors, making up roughly 5% of Stifel’s overall sales team, which has 2,300 members. There’s some ambiguity regarding whether the recent change will be an acquisition or an exclusive recruiting agreement, a method used by various affluent firms as they exit certain markets.

On Friday, the independent brokers at Stifel were notified of this plan. Equitable is reportedly offering retention contracts to some companies, amounting to about 35 basis points based on annual sales. This payout seems to be lower compared to the more lucrative deals that some aggressive independent firms are offering, which can be around 100 basis points.

A representative from Stifel has chosen not to comment, and there was no response from Equitable regarding inquiries.

In 2021, Stifel brought in Alex David, a veteran of independent brokerage, to overhaul its channels in light of the increasing trend toward independent brokerage practices. Competitors like Lamond James Financial and Ameriprise Financial maintain channels that surpass their employee segments.

The independent unit attracted multi-million dollar hires the following year, including a substantial team from Wells Fargo Financial Network and a group from Merrill Lynch managing significant assets.

However, Stifel’s CEO, Ron Kruszewski, had long viewed the independent brokerage segment as unprofitable, leading to stagnation in their initiatives. Alex David retired in 2024 and transitioned to Raymond James Financial Services as Kruszewski’s focus shifted away from the independent business.

Kruszewski reiterated his stance when Stifel moved about 400 independent contractors under a contract with B. Riley Financial for 36 employee channel advisors. He made a similar decision back in 2015 when Stifel acquired another broker-dealer, Stern Agee, focusing solely on its employee business.

Equitable Holdings, which manages Equitable Advisors based in New York, was previously the U.S. insurance and wealth division of the French financial group AXA SA before being spun off in 2019.