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Welcome to AdvisorTrends, where we help financial advisors navigate the complexities of transitioning to a new platform or broker-dealer. Today, we’re diving into Morgan Stanley’s latest comp structure for 2025—and what it means for smaller advisors.

Morgan Stanley just unveiled their 2025 compensation plan, and it’s a clear nudge—if not a shove—for smaller producers to consider their future. Starting in April, advisors with nine or more years of experience will need to generate $360,000 in annual revenue to avoid a reduced grid rate of 20%. That’s up from the current threshold of $300,000.

For a $300,000 producer managing around $30 million in assets, this new target means finding an additional $6 million in AUM, just to break even. It’s possible, but not easy, especially when Morgan Stanley’s focus is on larger, more profitable practices.

For many smaller advisors, this new reality feels less like a gentle nudge and more like a firm push. Some will try to grow, but others may start to wonder if a better fit is out there—a firm that values their business, offers a smoother path to growth, and maybe even a transition bonus.

It’s the classic "grow or go" dilemma. Will advisors scale up to meet Morgan Stanley’s demands, or is it time to explore new opportunities with broker-dealers that have more flexible expectations? One thing’s for sure—$300,000 just doesn’t cut it anymore.

If you’re curious about your options, you can secure multiple offers while remaining 100% anonymous.

Thanks for tuning in to AdvisorTrends. Be sure to check out our full episode library on Spotify, and stay informed about the best moves for your practice.