Skip to content
(888) 637 5510
White Securities Law
  • Attorneys
    • D. Daxton White, Managing Partner
    • Michael D. Kennedy, Partner
  • Practice Areas
    • Securities Fraud Attorneys
    • Securities Employment Attorneys
  • Resources
    • Contingency Fees
    • Types of Investment Fraud
    • Complex Investment Products
    • Common Securities Claims
    • FINRA Arbitration Attorney
    • FAQ
    • Press and Media
    • FINRA-Registered Broker Dealer Reviews
    • What is FINRA?
    • Testimonials
  • Locations
    • Chicago Securities Fraud Attorneys
    • Seattle Securities Fraud Attorneys
  • Blog
    • Broker Investigations
    • Current Investigations
    • FINRA and the SEC
    • Investment Loss Recovery
    • Podcasts
    • Publications
    • Securities Fraud Articles
  • Contact Us
  • Attorneys
    • D. Daxton White, Managing Partner
    • Michael D. Kennedy, Partner
  • Practice Areas
    • Securities Fraud Attorneys
    • Securities Employment Attorneys
  • Resources
    • Contingency Fees
    • Types of Investment Fraud
    • Complex Investment Products
    • Common Securities Claims
    • FINRA Arbitration Attorney
    • FAQ
    • Press and Media
    • FINRA-Registered Broker Dealer Reviews
    • What is FINRA?
    • Testimonials
  • Locations
    • Chicago Securities Fraud Attorneys
    • Seattle Securities Fraud Attorneys
  • Blog
    • Broker Investigations
    • Current Investigations
    • FINRA and the SEC
    • Investment Loss Recovery
    • Podcasts
    • Publications
    • Securities Fraud Articles
  • Contact Us
Free Consultation

Written by D. Daxton White• January 10, 2012• 9:42 am• Blog, Securities Fraud Articles

Merrill Lynch Shifting Away From Small Accounts

Share at:
ChatGPT Perplexity Grok Google AI

It is being reported that the latest compensation changes being made by Merrill Lynch Wealth Management to encourage brokers to go after wealthier clients will include the raising of the minimum account size to $250,000 per household, from $100,000.

Specifically, it appears that the firm will continue to pay advisers their retail compensation rates on existing accounts in that range, but advisers will only get a 20% payout on new clients with less than $250,000 in assets and if more than 20% of an adviser’s book is comprised of these smaller clients, the firm won’t pay at all for new clients below the threshold.

While this will not have any impact on many of the more experienced Merrill advisers, who typically have few clients with less than $250,000 in assets, this could have a significant impact on a few categories of advisors:

(1) Newer, less established advisors (generally called trainees). These advisors are usually just now starting to build their book of business and often focus on younger clients whose accounts will grow with the advisor over the course of the advisor’s career.
(2) Financial advisors that focus their business on smaller accounts.
(3) Advisors in smaller or less affluent areas that simply do not have a lot of individuals in their area that meet these requirements.

For each of these advisors, the changes will have a substantial impact. Additionally, if any of these advisors were recently recruited to Merrill Lynch and were not informed of this impending change, they may even have employment claims related to the representations made at the time or hiring to induce them to join the firm (i.e. the advisor may have been assured that he/she would continue to be permitted to focus on these smaller types of accounts).

Securities employment litigation is not uncommon in the recruiting context and can include claims for misrepresentation, breach of the implied covenant of good faith and fair dealing, and breach of contract (usually an oral agreement).

It would not be surprising to see many of these advisors who are essentially being forced to switch firms to survive to look into their legal options.

While it does not appear that Merrill’s move on account minimums has yet to be followed by its large-firm competitors, such as Morgan Stanley Smith Barney, and UBS, it would not be surprising to see the entire industry shift this way as a necessary means to increase profitability.

If you are a financial advisor feeling the squeeze by Merrill Lynch’s move to larger accounts and would like to speak to a securities attorney to discuss your legal options, The White Law Group may be able to help. To speak to a securities attorney, please contact the firm’s Chicago office at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit https://whitesecuritieslaw.com.

Tags: financial advisor trainee agreement litigation, financial advisor training cost litigation, Merrill Lynch account minimums, Merrill Lynch compensation plan changes, Merrill Lynch compensation small accounts, Merrill Lynch recruiting practices, Merrill Lynch trainee program, Morgan Stanley account minimums, securities employment attorney, securities employment law firm, securities employment lawyer, UBS account minimums Last modified: December 30, 2022

Related Posts

FINRA Rule 8210: Responding to Information Request, featured by Top Securities Fraud Attorneys, The White Law Group

Blog, Securities Fraud Articles

January 7, 2020

FINRA Rule 8210: Responding to Information Request

Share at: ChatGPT Perplexity Grok Google AIResponding to FINRA Rule 8210 Information Request If you are a financial advisor and have...

Read More →
Broker-Dealers refuse Ohio National agreements. Featured by Top Securities Fraud Attorneys, The White Law Group

Blog

February 19, 2019

Broker-Dealers Refuse Ohio National Agreements

Share at: ChatGPT Perplexity Grok Google AICetera – NEXT Financial – Refuse Service Agreements with Ohio National According to reports...

Read More →
Broker Protocol

Blog, Current Investigations

November 29, 2017

UBS Wealth Management withdraws from Broker Protocol

Share at: ChatGPT Perplexity Grok Google AITwo Big Firms Exit Broker Protocol, Financial Advisors may be Vulnerable to Litigation UBS...

Read More →
Securities Employment Claims, Featured by Top Securities Attorneys, The White Law Group

Blog, Securities Fraud Articles

July 12, 2012

Securities Employment Claims | Attorneys for Financial Advisors

Share at: ChatGPT Perplexity Grok Google AISecurities Employment Claims – Securities Attorneys for Financial Advisors – Updated...

Read More →
← Previous Story
Recovery of Grubb & Ellis Apartment REIT Losses
→ Next Story
Investment News: Thinkorswim Users Sue TD Ameritrade

Comments are closed.

THE WHITE LAW GROUP
Investment Losses? Contact us now for a free consultation!

Investment Losses?

Contact us now for a free consultation!
Loading
Committed to helping investors in all 50 states pursue claims against financial professionals and brokerage firms.
(888) 637-5510 . (312) 238-9650 . (312) 238-8950

Chicago Office: 125 South Wacker Dr., Suite 300 Chicago, IL 60606

Seattle Office: 450 Alaskan Way S., Suite 200 Seattle, WA 98104

Our Attorneys
  • D. Daxton White
  • Michael D. Kennedy
Our Locations
  • Chicago Securities Fraud Attorneys
  • Seattle Securities Fraud Attorneys
Our Practice Areas
  • Selling Away
  • Elder Financial Exploitation
  • Margin Trading
  • Broker Negligence
  • Unsuitable Investments
  • Misrepresentation
  • Excessive Trading/Churning
  • Ponzi Schemes
  • Unauthorized Trading
Other Information Links
  • Contact Us
  • Blog
  • Press and Media
  • Client Testimonials
  • Frequently Asked Questions
  • Privacy Policy
  • Sitemap
© 2025 by The White Law Group, LLC All rights reserved.