BofA wants to train – not recruit – up to 2,000 new brokers this year

After trimming the ranks of its brokerage force, Bank of America Corp. wants to put more troops in the field again — this time by promoting and training foot soldiers
APR 22, 2010
After trimming the ranks of its brokerage force, Bank of America Corp. wants to put more troops in the field again — this time by promoting and training foot soldiers. BofA plans to hire as many as 2,000 brokers in its global wealth management division over the next year, mostly in the United States, the Financial Times reported last week, citing unnamed sources. The company wants to train new brokers, the sources said, rather than compete in the costly and cutthroat market for established individuals and teams. The bank has about 17 million “mass-affluent” customers that likely would qualify for wealth management services. In a press presentation last month, Sallie Krawcheck, president of global wealth and investment management at BofA, said that the company will indeed do some hiring and training, but not at “an ex¬tremely high rate.” It turns out that she must have meant that in a relative sense. The combined businesses of BofA and Merrill Lynch & Co. Inc. formed one of the largest wealth management businesses in the world, with more than $2 trillion in total client assets and about 15,000 financial advisers at the end of last year. That total was down 11% from the roughly 18,000 that the bank had at the start of last year, when the two companies finalized the merger. Selena Morris, a spokeswoman for BofA, wouldn't outright confirm the Financial Times story, but in an e-mail, she noted that “the bulk of our investments in our business are in capabilities for clients and existing advisers. In addition, we look to add quality advisers and bankers, in particular through our training program.” Hiring more brokers to appeal to BofA's wealthier retail customers is a smart move for the bank — though it would have made more sense to try to hang on to more of the brokers it lost, said Alois Pirker, research director at Aite Group LLC. Still, “the combo only makes sense if you can leverage each other's franchise, and to do that, you have to reach across to retail banking,” he said. Ultimately, Mr. Pirker said, that is where the opportunity for BofA lies. “If you don't leverage the opportunity, you might as well split [BofA and Merrill] up again,” he said. E-mail Hilary Johnson at [email protected].

Latest News

Northern Trust names new West Region president for wealth
Northern Trust names new West Region president for wealth

The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.

Capital Group extends retirement plan services further with a focus on advisors
Capital Group extends retirement plan services further with a focus on advisors

The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.

Why RIAs are the next growth frontier for annuities
Why RIAs are the next growth frontier for annuities

David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.

Supreme Court slaps down challenge to IRS summons for Coinbase user data
Supreme Court slaps down challenge to IRS summons for Coinbase user data

Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."

Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director
Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director

Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.