Tr?id=566623520170033&ev=PageView&noscript=1

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
Quotes Bigger

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

1785772777 Law
August 3, 2026
FINRA Launches Review of High-Risk Structured Notes Sales and Supervision

The Financial Industry Regulatory Authority (FINRA) has launched a regulatory sweep examining the sale of high-risk structured products, with particular attention on non-principal protected "worst-of" structured notes, according to AdvisorHub.

1785531573 Law
July 31, 2026
Former Alabama Financial Advisor Barred After Selling His Practice

The U.S.

1785428190 Law
July 30, 2026
CFP Board Proposes New Rules for Handling Expunged Criminal Records

The CFP Board has announced that it is considering a proposal to change how it treats applicants with expunged criminal convictions, according to Wealth Management.