Page 43 - Investment Advisor March 2022

explained. “Maybe they think with this trainee program can work (at least for and bring into the fold candidates who
new approach the success rates will go Merrill Lynch’s goals), as long as it still do not come from a privileged upbring-
up and, therefore, they don’t have to delivers on the new, somewhat less ing (which likely means a more diverse
shove as many people through the fun- demanding training process required,” talent pool),” according to Diamond.
nel as they used to.” In his opinion, “they he said. On the other hand, because the firm
can shove a thousand people through it, A broader array of product and ser- “now forbids cold calls and new advi-
but the results will not be any different vice knowledge requirements, but less sors are expected to work with bank- or
than before.” selling, makes sense, he said via email, Merrill Edge-referred clients, it removes
The more they can make it [like] noting “since so many ‘replacement’ the critical business-building skillset
an apprenticeship” in which trainees advisors are needed at a firm the size from new advisors’ toolboxes and “will
learn from experienced advisors at the of Merrill Lynch, the new advisors can make this next generation advisor much
firm, similar to how independent RIAs survive on the huge number of existing more captive and ‘stuck’ than their pre-
train people to become advisors, the clients in existing teams, and benefit decessors,” Diamond predicted.
more successful the new
program will be, Welsh The old [training] model the firm MERRILL RESPONDS
said. “It takes patience used, in which trainees made cold Asked to comment on
and time.” some of the skepticism,
Asked if he thought calls maybe ‘200 times in a day to a Merrill spokesperson
it was possible to have a only pointed to a few
gold-standard advisor hope to connect to a few people’ is a additional details about
training program now, ‘laughable model in today’s world with its new program:
Welsh replied: “Not at that • “Seven months in, we
scale. No way. You have to caller ID and suspicion of everybody.’ already have 1,000 train-
cut too many corners. You ees in the program.”
have to rely on the law of —Danny Sarch, Leitner Sarch Consultants • “The new program
large numbers and you’re places increased emphasis
just going to have a higher failure rate from the large number of ‘client book on recruiting talent from within Bank of
and that’s expensive.” transition opportunities’ occurring each America, including the Consumer Bank,
Even 30 years ago, the “failure rate year as advisors retire or leave.” Global Banking and Markets, and roles
was extremely high,” he said, noting he Tasnady added that “key success fac- currently in Merrill. We also continue to
went through Merrill’s advisor training tors” will include “the quality of the hire externally sourced talent.”
program in 1995, when less than 20% graduates” and the acceptance levels of • “One of the key elements of the new
of trainees graduated. It’s also hard to existing [advisor] teams to ‘add them’ to program is that trainees will receive
have a gold-standard program now “just their groups.” extensive leads and referrals from Bank
based on the nature of the beast and how of America. Program participants will
wealth management has evolved and NEW ASSET GATHERING STRATEGIES have access to leads and referrals from
changed,” he explained. “One of the complaints of the old pro- Bank of America financial centers; digi-
Today, “you’re giving advice and gram was the high attrition rate since tal channels; employees of companies
guidance based on some sophisticat- the firm (and all major firms offering for whom we provide retirement and
ed wealth strategies and understand- training programs) had lofty new asset other financial benefit plans, or who
ing the tax laws, the various retirement and household requirements,” accord- leverage our corporate employee bank-
accounts and all of the different things ing to Louis Diamond, president of ing and investing offering; as well as
involved with doing a full-service Diamond Consultants. That “meant that from retiring advisors.”
approach,” he explained, calling this advisors who didn’t have robust per- • She confirmed there is an “increased
shift the “RIAification of the industry.” sonal networks or who weren’t gifted emphasis on coaching and oversight.”
cold callers had a tough time hanging • “The new program has been
MORE KNOWLEDGE, LESS SELLING around,” he said. designed in part to help increase grad-
Offering a more optimistic take was “A positive of the new program will uation rates to as high as 80%, while
Andy Tasnady, managing partner of be a higher success rate since it will be also increasing the diversity of our
Tasnady Associates. “A new, shorter much easier for advisors to gather assets advisor base.”

MARCH 2022 INVESTMENT ADVISOR 41