Merrill Lynch's advisor attrition has elevated slightly above the typical 4 percent rate for 2o22. Although the attrition rate has increased, President Andy Sieg shared that the rate is still marginally lower than where it was last year, according to AdvisorHub.
On the other hand, Merrill has improved its ability to keep clients of departing advisors, holding onto 50 percent of the advisor's books in the four to six months after their departure. According to Sieg, the firm is also combatting attrition by boosting its hiring efforts, primarily of advisors with limited experience.
Merrill has hired 97 advisors in the three months ending September 30, its strongest recruiting quarter in over a decade. Most of the new hires have come through Merrill's Accelerated Growth Program. The Accelerated Growth Program pays a guaranteed salary over five years and targets recruits that typically have between two and 12 years of advisor experience.
Additionally, advisors in the bank's wealth management division added $4.1 billion in net new advisory assets, almost $10 billion, or 72 percent, during the third quarter. Sieg attributes Merrill's improved asset retention to rising client satisfaction with the firm's products and services. Additionally, the firm has more aggressively sought to retain its customers when advisors leave by matching them with a new advisor.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
