As some established large teams have exited and several others are actively exploring options, a slow shift is starting to emerge among Merrill Lynch advisors.
The movement is not necessarily being driven by any major change within Merrill, but more advisors are becoming restless and are questioning their future with the firm. By most accounts, Merrill has stabilized after a period of disruption earlier under former wealth boss Andy Sieg. The exodus has slowed as many of his policies, including sharp cuts to brokerage payouts and growth penalties, were curtailed or softened.
With Sieg at Citi and under the leadership of Lindsay Hans and Eric Schimpf, Merrill has recalibrated, restoring parts of its legacy culture while maintaining the scale and resources of a large bank platform.
That has left Merrill in a stronger position today. But the broader industry has also evolved, and that is beginning to influence behavior at the top end of the advisor base. Some wirehouses, such as Wells Fargo, have positioned themselves to cover the full career arc from bank to RIA. At Merrill, advisors must evaluate where and how they can best monetize their life’s work over the coming decade.
That’s what is driving early signs of curiosity from sophisticated Merrill teams, particularly those that joined in the years leading up to the firm’s 2017 recruiting pullback. Many of those advisors accepted large transition packages that are now nearing the end of their terms, or have already been paid off. As those commitments expire, the calculus changes.
“It’s not that Merrill advisors are unhappy,” said Roger Gershman, founder of The Gershman Group. “But many of these are mature, highly built-out businesses that are starting to ask what comes next.”
In some cases, advisors who took on loans to acquire CTP books of business have now fully paid them down. Others are weighing whether the constraints of a large bank structure still fit the way they want to operate. The result, Gershman said, is a cohort that is “a little more restless and starting to look around.” There are also questions about how industry shifts over the next decade will affect advisors at bank-owned firms.
Recent high-profile breakaways have added to that dynamic. Moves like the OpenArc departure have not triggered a rush for the exits, but they are part of the diligence process for teams evaluating their options. That was one of the teams that no one thought would leave, given their large corporate client base that was unlikely to follow.
It is still early for OpenArc, and independence is not the right fit for every advisor. But Merrill advisors face a more complicated decision than some other wirehouse teams. They’re not being pushed out by corporate changes, but they also do not have as much optionality as advisors, some peers, or those on the independent side.
Independence has become a more credible and accessible path than it was a decade ago, with supported independence models offering infrastructure that once required going fully on one’s own. But it requires a careful look at long-term goals and understanding of the economics behind practice valuations.