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RBC announced a decrease in percentage of payouts for advisors generating under $300,000 in revenue in an effort to weed out smaller advisors. RBC is moving in a new direction and wants to attract more million dollar producers in an effort to double its productivity in 5 years.

Financial advisors who were generating under $300,000 were happy with their current payout as you can see by their attrition rate of 4-5% in the past three years. Now, RBC is going to get what they wanted; smaller advisors jumping ship. Are other broker-dealers going to follow suit?

RBC seems to be recruiting the larger advisors already and is well on its way to meeting its goal in productivity.