Mindy Diamond sits down with breakaway Merrill Lynch executive Vince Fertitta to get his perspective on what an enhanced CTP program could look like.
For some time now, we have awaited Merrill Lynch’s announcement regarding enhanced CTP or “Client Transition Program.” While there are no details about the new program as of yet nor who it will pertain to, we know that the devil will be in the details. To be sure, a senior advisor who has every intention of retiring from Merrill through CTP should be excited about an enhanced program because it will essentially pay them more to do what they were going to do anyway.
But it is the next gen advisors, teams and clients that are most at risk—because we know that BofA is not likely to offer better retirement economics without a quid pro quo. While in this case, the enhanced program may not include “new” post-employment restrictions, still, the non-solicit provisions already in partnership agreements are strict and onerous—thus, limiting optionality for the inheriting advisors.
And, so what? Why should you care? Because eliminating optionality will have the greatest impact on the value of an advisor’s business, unwittingly sell clients to your firm, and further shift the balance of power away from advisors.
Vince Fertitta has a unique perspective on the topic: He spent 22 years with Merrill Lynch and recently joined the breakaway movement as president of Sanctuary Wealth. He discusses what enhanced CTP could look like, who will it be for, what will it mean for all advisors, and much more.
For an Update on the Topic…
A Post-Announcement Update on Merrill Enhanced CTP: What it Means for Advisors, Their Next Gen and Clients