The report said that all advisors entering the program will get a pay boost when arrangements take effect from November 2021.

Merrill Lynch has reportedly promised to encourage financial advisors to hand their clients to colleagues in cases where they commit to retire from the organization in 2021 .

A report by InvestmentNews, citing an internal memo from Andy Sieg, president of Merrill Lynch Wealth Management, said the firm has set out “significant enhancements” to the program, known as a “client transition program”.

The changes don’t create a new garden leave provision or stop an advisor from working with clients while they are under contract but are not coming to the office, the memo reportedly said. One worry for some wirehouse advisors, the story said, is that in the future large firms will make garden leave terms more onerous, binding advisors more tightly to the businesses. 

The story sheds light on the war for talent in a wealth management industry where the trend of “breakaway” firms being formed by former wirehouse employees is now well entrenched.

Family Wealth Report has been in contact with Merrill Lynch about the matter to seek further details and clarification, and may update in due course.