Merrill ramps up adviser training after record revenues in Q3

After calling a timeout on training due to Covid-19, Merrill Lynch & Co. Inc. is ramping up its new adviser development program that launched in June with 750 advisers, and hiring is underway.

The program, called ADP internally at Merrill Lynch and its parent company Bank of America Corp., draws upon potential trainees from other parts of the company, according to the firm. Some could be already licensed to sell securities but don't have the background in financial advice.

Bank of America released its third quarter earnings Thursday morning, giving updates to its giant wealth management business.

Historically, Merrill has hired about 2,000 financial advisers into its training program annually, according to the company. With 18,855 financial advisers across its variety of platforms at the end of the third quarter, financial adviser headcount is down 3% compared to June and 8% year over year.

That's in large part due to an 18-month pause in hiring trainees during the pandemic, according to Merrill Lynch.

The new ADP program not only cuts out the practice of cold calling for potential clients, but is designed to be a full-fledged talent management strategy that will integrate career paths and training for multiple roles within the company, the firm said in May.

Meanwhile, like its competitors, Merrill Lynch is clocking record high financial results in a number of areas as the broad stock market continues to move upwards after its Covid crash of February and March 2020.

Merrill reported record revenue for the three months ending in September of $4.5 billion, an increase of 19% compared to the same time last year. Revenue was driven by record asset management fees and the impact of loan and deposit growth, according to the company. And Merrill also hit record client balances for the quarter of $3.1 trillion, an increase of 21% year over year.