Merrill Lynch saw its best quarter of hiring experienced financial advisers in a dozen years, reeling in 93 advisers over the three months that ended in June, according to a senior Merrill Lynch executive.
Merrill Lynch has been focusing on a series of plans for hiring financial advisers, ranging from rookie trainees just starting out in the financial advice industry to the most senior, sought-after advisers in specific regions that have been underserved by Merrill Lynch and its parent, Bank of America Corp.
During the second quarter, Merrill Lynch had success in hiring what it deems "early career" advisers, or those with a handful of years of experience who are looking for a change, said Andy Sieg, the president of Merrill Lynch Wealth Management.
Sieg told InvestmentNews during the winter that after hunkering down on hiring advisers during the pandemic, Merrill Lynch was once again looking to bolster the numbers of its thundering herd. And this year, it is targeting more young financial advisers with limited experience in the industry and, more selectively, experienced advisers outside major metropolitan markets.
The 93 hires in the second quarter, up from 30 in the first quarter, had an average length of time in the brokerage industry of seven years, said Sieg, who spoke Monday morning to reporters on a conference call to discuss recent wealth management results after the bank released its second-quarter earnings. Sieg added that one-third of the hires were minorities, or people of color, calling minority hiring at Merrill Lynch both a moral and commercial imperative for the firm.
He expects the robust pace of adding financial advisers to continue in the second half, even though the stock market is down sharply, which makes some advisers reluctant to change employers as client accounts may be down for the year.
"Our hiring pipelines are robust," Sieg said.
The bank reported a total of about 18,500 registered reps and financial advisers across its various wealth and advice business channels, similar to what it had in the first three months of the year.
Meanwhile, Bank of America, like other large financial institutions that employ financial advisers, is facing regulatory scrutiny over employees' communications. It said Monday it has set aside around $200 million for a regulatory matter connected to the unauthorized use of personal phones, with the expectation that the matter be settled soon.
The global wealth and investment management operations at the bank reported client balances of $3.4 trillion, down $286 billion, or 8%, driven by lower market valuations, which were partially offset by net client flows. Merrill Lynch reported that it added 4,500 net new households in the second quarter; adding net new clients has been a highly focused goal for the firm.
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