Merrill Lynch Increases Referral Fees to Recruit Veteran Advisors

Posted on June 20th, 2024 at 4:29 PM
Merrill Lynch Increases Referral Fees to Recruit Veteran Advisors

From the desk of Jim Eccleston at Eccleston Law

Merrill Lynch has begun enhancing its recruitment efforts- now offering headhunters a 10 percent referral fee, up from 8 percent, for successful placements. This increase targets 34 specific markets, including key locations like Los Angeles and certain rural areas outside the Bank of America footprint in an attempt to attract veteran advisors.

AdvisorHub reports that this move is part of Merrill's broader strategy to boost its veteran broker recruiting, which had stalled following a five-year hiring freeze. Despite resuming hiring in 2022, Merrill had limited success, and subsequently intensified its efforts late last year, offering attractive packages to seasoned brokers.

The renewed strategy has already seen positive results, such as the recruitment of a $3.5 billion ex-First Republic team in Florida and a $300 million ex-First Republic broker in San Francisco. Typically, firms pay recruiters between 6 percent and 8 percent of an advisor’s annual revenue, though some, like LPL Financial and Wells Fargo Advisors, have selectively offered even higher fees.

Industry recruiter Rick Rummage acknowledged the increase as a significant and overdue adjustment, suggesting it would incentivize recruiters to introduce candidates to Merrill managers, effectively increasing Merrill's recruitment opportunities.

Merrill's recruitment drive comes amidst a continued exodus of high-profile teams, despite the company's claim that experienced broker attrition remains around the historical average of 4 percent. Recent departures include multiple billion-dollar teams moving to competitors like Stifel Financial, LPL Financial, and J.P. Morgan Advisors.

Merrill no longer reports broker headcount in Bank of America’s earnings and stopped reporting combined advisor headcount earlier this year. An anonymous outside recruiter told AdvisorHub that Merrill's fee increase was a necessary adjustment to remain competitive in the recruitment market.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

January 6, 2026
SEC Halts Review of Ultra-Leveraged ETFs, Citing Risk Limits

The U.S. Securities and Exchange Commission (SEC) has stepped in to curb the expansion of ultra-leveraged exchange-traded funds, issuing a series of warning letters that effectively block proposed products designed to deliver three- and five-times the daily returns of stocks, commodities, and cryptocurrencies.

January 5, 2026
FINRA Suspends Former UBS Broker Over Personal Credit Card Transfers

The Financial Industry Regulatory Authority (FINRA) has sanctioned a former UBS Wealth Management USA broker, Timothy R. Jones.

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.