Merrill Lynch to Halt Broker Recruiting

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Merrill Lynch to Halt Broker Recruiting

(New York)

Merrill Lynch has just announced a policy change which could send shockwaves across the wealth management industry. The firm says it will now longer pay top Dollar to recruit advisors from other firms. For years advisors have accepted high strings-attached payouts to switch firms, sometimes accepting 7-figure payouts to move house. Firms themselves have long disliked these payouts and the competitive broker landscape overall. However, Merrill Lynch has now turned its back on the practice, saying it will shift its focus to promoting regional and younger advisors internally, especially those with between 3 and 8 years of experience.

FINSUM : With a major player like Merrill backing away from "prisoner exchange", it seems like the big payouts could dwindle quickly. Will other firms follow suit?

Source: Wall Street Journal

  • merrill lynch
  • recruiting
  • prisoner exchange
  • payouts

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Wealth Management

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