This week, Merrill Lynch made the eligibility requirements for early-career advisors stricter in its Accelerated Growth Program (AGP), which has been the primary source of new recruits since the wirehouse paused hiring veterans in 2017.
As reported by AdvisorHub, Merrill informed field managers that it had raised the threshold for candidates' assets in the AGP to $75 million, a threefold increase from the current minimum of $25 million. Rick Rummage, a recruiter in Virginia, confirmed this change and stated he had spoken to numerous sources within and outside the firm who were briefed on the matter.
Additionally, Merrill will now exclusively consider candidates from warehouses, regionals, and independent brokerages for the AGP, discontinuing the acceptance of candidates from private banks. This shift represents a significant change for the program, which had previously recruited from diverse non-traditional sources like salaried positions at local banks and credit unions.
Many believe the changes will trigger the program's downfall. Critics are raising questions about the program's success in cultivating candidates after entry. Over the past five years, Merrill expanded the program and recruited approximately 300 advisors in 2022, primarily consisting of early-career brokers. This contrasts with the 98 newcomers hired in 2018, marking its inaugural full year. The program was perceived as a cost-effective approach to fostering growth and incorporating diverse talent, steering clear of the expensive recruitment of veterans and the limited success rates linked with training individuals without prior experience.
While modifying the AGP program, Merrill has reinstated veteran advisor recruitment and reinitiated its training initiative involving approximately 2,000 candidates. Earlier this year, the company revised hiring targets for its approximately 105 market executives. It emphasized, particularly in significant markets, its renewed commitment to onboarding veteran brokers possessing a minimum of 12 years of experience and generating nearly $1 million in production.
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