A special episode with guest Vince Fertitta, Merrill breakaway executive, now President of Sanctuary Wealth.
After months of rumors, the day finally arrived: Merrill Lynch released details on their enhanced Client Transition Program or CTP.
At face value, it is an honest attempt by Merrill to acknowledge the attrition they’ve experienced – especially among elite advisors – and a way of making their retiring advisor program more competitive.
To be fair, the details around the enhancement can be compelling for a senior advisor who has every intention of retiring from Merrill through CTP because the program will now pay him more to do what he was going to do anyway.
But it is the next gen advisors, teams and clients who are most at risk—because the quid pro quo of better retirement economics for senior advisors is that it comes attached to a 7- to 9-year commitment to the firm (plus strict non-solicit provisions) for the inheriting team.
So what? Why should you care? What does this really mean for all Merrill advisors going forward—whether you’re a senior advisor pondering retirement, the next gen inheritor of a business, or none of the above?
Vince Fertitta, recent Merrill breakaway executive who is now President of Sanctuary Wealth, joins the show to answer those questions and more, drawing from his experience of over two decades with the firm.
In this episode, Mindy and Vince explore:
- What the “Client Transition Program” or CTP really is—and how it impacts retiring advisors, their next gen and their clients.
- Who will benefit most from enhanced CTP—and what are the risks of signing on, now or in the future.
- What it means to lose “optionality”—and what the next gen inheritors need to be aware of.
- And the major concern that many advisors have: That programs like this represent another move closer toward a salary bonus model—where advisors go from being free-will or at-will employees to salaried private bankers.
It’s an important episode—one that all Merrill advisors should listen to.
Stuck in Place: How Merrill’s CTP Has Senior Advisors Right Where the Firm Wants Them
Advisors who accepted Merrill’s ironclad succession agreement are now realizing how stuck they really are—serving as a cautionary tale for those who have yet to sign on. Read->
When Faced with a “Retention Deal,” Merrill Advisors Will Have 3 Options
The conversation around a highly anticipated “retention deal” from Merrill Lynch has advisors wondering, “If I get the offer, what should I do?” Read->
What’s Changing at the Wirehouses—and Why You Need to Pay Attention
As firms cut back on recruiting and amp up their retention efforts, the balance of power shifts further and further away from the advisors—diminishing leverage, business value and opportunity, and leading down a path that advisors fear most. Read->
Vince Fertitta is the President of Wealth Management at Sanctuary Wealth. A 27-year wealth management industry veteran, Vince was most recently one of six Division Executives at Bank of America Merrill Lynch, as well as Bank of America San Antonio Market President. A native Texan, Vince grew up in Beaumont and earned a Bachelor of Science degree in economics from Texas A&M University. He entered the financial services industry in 1992 as a financial advisor at Shearson Lehman Brothers (now Morgan Stanley) in Beaumont, Texas, where he earned the title of Vice President. In 1996, Vince moved his practice to Merrill Lynch, where he continued to serve as Vice President and Financial Advisor, as well as Sales Manager, through 2001.
At the end of 2001, after 10 successful years as a Financial Advisor, Vince began a 17 year career in management at Merrill Lynch ascending to senior leadership where he was responsible for over 2,200 financial advisors across 10 states. In 2019, Vince left Merrill joining Sanctuary as part of the “break away” movement from wirehouses to independence.
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