Wachovia Securities, a unit of US bank Wells Fargo that has bought Wachovia, recently put a hold on recruiting financial advisors for its profit formula group, according to people familiar with the situation, the Wall Street Journal said.

The group is an offshoot of Wachovia's traditional brokerage, the private client group, and has been attractive to advisors because it allows them to operate somewhat independently from the firm, the publication said.

Brokers in profit formula are responsible for their own expenses but can receive a higher payout than some private client colleagues who typically earn 40 per cent to 45 per cent of their trailing 12-month production.

This group differs from the independent channel, however, because brokers can still receive various perks from their affiliation with Wachovia.

A spokeswoman for Wachovia Securities said the firm declined to comment on its current recruiting practices while it completes its integration with Wells Fargo.

Wachovia Securities recently adjusted its recruiting deal to base its payouts for financial advisors on three months' production rather than the standard industry practice of 12 months. The signing deal was altered to get a more accurate reading of brokers' production based on current market conditions.

In 2009, Wachovia had recruited 355 experienced financial advisors, as of 20 February, who had more than $181 million in combined production and managed more than $23 billion in client assets.