RJ and Makay

>> Read More RJ & Makay Blog Posts

Here is a breakdown of second-quarter 2011 wirehouse data for Bank of America Merrill Lynch, Morgan Stanley Smith Barney, Wells Fargo Advisors and UBS Wealth Management, Americas as published by Investment News on August 2, 2011.  Bank of America Merrill Lynch showed the highest advisor headcount growth, and all except for UBS Wealth Management, Americas saw year over year increases in client assets, with Morgan Stanley leading the way at 13.9%.

The wealth management industry is alive and well, and for many banks, wealth group results provide the heavy lifting as a percentage of total revenue.  First-quarter earnings at Wall Street firms with large advisor forces show that after two years of financial turmoil, the four major wirehouses have righted themselves and are poised to continue impressive growth.

UBS Wealth Management Americas, the U.S. retail arm of Swiss banking giant UBS AG, took in 8.4 billion in net new money the first quarter, compared with outflows of about $3 billion in the year ago period.

Starting at the end of 2011, advisors at Merrill Lynch with 10 or more years of experience, producing less than $250,000 in annual client commissions and fees will be required to leave the advisor ranks, say people at the firm. Advisors who don’t achieve the cut-off point can be considered for other, low-ranked positions at the company, such as client associates.

Like other brokers, Merrill Lynch typically pays less to advisors who aren’t reaching target commissions in order to discourage them from staying on, but this is the first time it has issued a flat minimum production. Merrill Lynch uses a “penalty box” on its pay grid for those advisors who fail to make their numbers, which discourages veteran advisors from coasting at lower levels.