Merrill Lynch
Wirehouses expected to lose more market sharePosted by RJ and Makay on Jan 20, 2012 |
>> Read More RJ & Makay Blog Posts
Wirehouses have been losing market share since the financial crisis, and according to a new report from Cerulli Associates, the trend may accelerate over the next three years. The entire financial advisory industry stood at less than $11 trillion in 2007. Assets reached 11.2 trillion in 2010. That same time frame saw assets at wirehouses dropping from $5.5 trillion to $4.8 trillion, Cerulli reported.
Merrill Lynch is raising the minimum account size in its wealth management unit from $100,000 to $250,000, the firm recently announced. Raising the account minimum could boost results for its high-end wealth management business and expand the market for its mass-affluent Merrill Edge operations. It could also negatively impact broker trainees, small market financial advisors and low-end producers who rely more on smaller accounts.
Morgan Stanley Smith Barney (MSSB) announced yesterday that it has recruited one of Merrill Lynch’s largest broker teams in New York City, a group that generated more than $14 million in annual revenue and oversaw more than $1 billion in client assets in the past year. Harvey Kadden, a 30-year Merrill Lynch veteran, is joining MSSB along with Mihir Patel, Randy Knopp, Tim Baker and Chris Barber.
