The “Evil Empire” and the Shift at Merrill Lynch

Jeff often refers to Bank of America and Merrill Lynch as the “Evil Empire,” a sentiment that’s easy to understand, given the industry’s traditional corporate culture. While it’s not quite as ominous as the “great vampire squid” analogy, Merrill Lynch represents a more old-school approach to wealth management. Since merging with Bank of America, however, it’s had to adapt, notably through the introduction of 300 “financial solutions advisors” into its wealth-management offices.

The Rise of Financial Solutions Advisors

Many financial firms, especially those targeting Baby Boomers, have been grappling with the need to serve younger generations. Merrill’s solution is the introduction of “financial solutions advisors,” typically younger employees tasked with helping clients set up web-based accounts, without the need to pay a traditional advisor. While this may make sense for a massive financial institution looking to streamline its services, it creates tension with more traditional advisors whose income is closely tied to personal client relationships and specific wealth goals.

The real challenge for the future of personal finance will lie in aligning the interests of clients and advisors, rather than working with two service providers that have fundamentally opposing business models.

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• SECURITIES AND EXCHANGE COMMISSION, Investment Company Act Release No. 33440; 812-14405
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• Congress Is About to Ban the Government from Offering Free Online Tax Filing. Thank TurboTax.
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• Cause for Worry: Stock and Bond Prices Walk Hand in Hand

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