Bank of America's Chief Executive Brian Moynihan recently discussed Merrill Lynch's renewed focused on recruiting experienced financial advisors, signaling a strategic shift after the firm stepped away from veteran broker hiring nearly a decade ago.
According to AdvisorHub, Moynihan explained that at Merrill has resumed recruiting efforts despite the rising costs associated with hiring established advisors. He acknowledged that transition packages and forgivable loans have become increasingly expensive throughout the wealth management industry, but stated that the firm now views those costs differently.
Moynihan emphasized that Merrill's leadership believes the economics of experienced advisor recruiting can still benefit the firm. AdvisorHub reports that executives have become more confident that advisors who bring affluent clients to the platform also generate profitable banking relationships through lending and deposit activity.
At the same time, Moynihan cautioned that firms must remain mindful of recruiting economics as compensation packages continue climbing across the industry.
According to AdvisorHub, Merrill largely withdrew from recruiting veteran advisors in 2018 before restarting those efforts in late 2022. Earlier this year, the firm disclosed to regulators that forgivable loans extended to advisors increased 48 percent year over year to approximately $374.5 million.
According to the report, Merrill executives also stated earlier this year that the firm hired more experienced brokers in 2025 than during the prior year while maintaining the lowest attrition rates the company has seen in years. Even so, recruiters reportedly noted that Merrill's recruiting efforts still trail some of its competitors.
Financial Advisor Transitions consults with advisors nationwide regarding employment transition options and strategies to preserve and protect their practices during any transition.
