Merrill and BofA move to reassure reps
In a move calculated to reassure anxious brokers, Merrill Lynch & Co. Inc. and Bank of America Corp. told their reps Wednesday that the combined firms will be a part of the so-called “protocol for recruiting brokers.”
In a move calculated to reassure anxious brokers, Merrill Lynch & Co. Inc. and Bank of America Corp. told their reps Wednesday that the combined firms will be a part of the so-called “protocol for recruiting brokers.”
On Oct. 24, Merrill Lynch of New York and Bank of America of Charlotte, N.C., rolled out retention bonus plans for their combined 19,000 reps.
The plan sparked fears among some brokers that they would be subject to lawsuits and restraining orders if they moved to a competing firm after signing the agreement.
Merrill Lynch is currently a member of the protocol, while Banc of America Investment Services Inc., the bank’s retail broker-dealer, is not.
The purpose of the protocol is to allow brokers from firms who have agreed to its terms to move to competitors with limited personal information of clients without the fear of a lawsuit.
“Today’s announcement is one example of how we’re moving quickly to bring together Bank of America and Merrill Lynch,” Keith Banks, president of Bank of America’s global-wealth-and- investments division, wrote in an internal e-mail to the reps.
In September, Bank of America acquired Merrill Lynch for $50 billion in stock.
The acquisition is scheduled to close on or after Dec. 31 and is subject to approval by regulators and shareholders.
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