Merrill to continue focus on training over recruiting in 2020

Merrill to continue focus on training over recruiting in 2020
Long the financial advice industry's leading trainer of young brokers, Merrill to renew attention on coaching
JAN 15, 2020

As it racks up record profits with the stock market hitting new highs, Merrill Lynch will continue to eschew recruiting experienced advisers and instead introduce or reinforce programs that focus on training young or less experienced professionals with the intent of turning those newbies into full-fledged wealth managers.

Merrill has been steadily positioning itself to focus on new blood advisers for the past few years. In 2017, Merrill Lynch, along with key wirehouse competitors Morgan Stanley and UBS, said it was backing away from recruiting, a traditionally but expensive way to hire new brokers and advisers.

Since then, Merrill, which has long been the financial advice industry's leading trainer of young brokers, has put more attention to training and integrating less experienced brokers and advisers into its primary wealth management business.

For example, last April the firm said it intended to seat up to 300 young advisers, with some applicants coming from Merrill's online and robo-advising brand, Merrill Edge, in branch offices with its most experienced and profitable advisers, commonly referred to as wealth managers.

That is just one part of the strategy. Merrill will continue to selectively hire advisers into what it calls its "accelerated growth program," designed for advisers with two to seven years of experience and from community markets.

The firm now has 75 managers dedicated to coaching and training and is increasing opportunities for registered support staff and workers, known as client associates, to become financial advisers, said one Merrill Lynch executive on a call Wednesday morning with reporters.

"Merrill is putting no focus on shifting back in the direction of traditional adviser recruiting," the executive said, emphasizing training.

Merrill Lynch's parent, Bank of America Corp., released its fourth-quarter earnings on Wednesday morning. Highlights for its Merrill Lynch division were record net new households — a big, recent strategic push for the firm — of more than 40,000 last year — up more than 25% compared to 2018 — and record pre-tax margins of 26.5% for 2019.

And the firm's head count for financial advisers across its traditional wealth management and digital platforms was flat year-over-year, ending 2019 with 17,458. That total includes trainees at its traditional wealth management business.

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.