(August 28 11:45 ET) – Merrill Lynch is in a new pilot project for high net-worth investors that would bring together top brokers to serve the ultra-affluent investor in certain U.S. cities, The Wall Street Letter reports.
The new super service may be delayed, however, because the qualification criteria for brokers is so tough that few are making the cut. WSL says only nine of 120 brokers who applied to join the elite force have been certified, and only 20 managed to even pass the preliminary cut.
The requirements include having at least six pre-existing accounts with at least US$5 million each in assets, cutting your book to less than 200 accounts and limiting all future accounts to a US$5 million minimum, WSL says. Brokers who meet the qualifications are then subject to an interview at Merrill’s retail headquarters.
Merrill decided to segment its sales force at the behest of its investment bank, which reportedly wants a team of elite brokers for its top-notch referrals. “They need to have cachet to capture the high end of the market,” an unnamed broker is quoted as saying. So far, an office is being planned for Century City by the first quarter of 2001, built around some top producers wooed from rival Goldman Sachs.
Merrill executives would not comment directly on the report. A spokesman would only say the program “will be one of a variety of models we¹re trying out to service the very wealthy in various locations.”
-IE Staff