Firms are Shifting their Business Models, and Advisors Can Exploit this to Grow AUM

Merrill Lynch and Morgan Stanley maybe signaling a new reality for Advisors, but it’s not all bad news!

The move by Merrill Lynch and Morgan Stanley over the last week to change the way they report the number of Advisors on their respective platforms is a shot across the bow, a warning shot to Advisors of what’s to come.

Few have fully understand how consequential this change is for the industry.

We believe that many of the large full service or bank owned firms will soon follow.

In Canada for example, firms like Scotia Wealth, TD Private Wealth and CIBC Wood Gundy have already started to position their platforms for these changes.

But Merrill Lynch is the Role Model for Other Firms

In the case of Merrill Lynch, there’s been a curious silence over the last year, for a large firm, they’ve shown very little interest or strength in their recruiting efforts.

Merrill is traditionally one of the most aggressive in the industry, since the start of the pandemic there’s been a steady departure of Advisors to other platforms. For the 12 months leading up to March 2021, Merrill’s headcount dropped…