Tr?id=566623520170033&ev=PageView&noscript=1

Merrill to Discontinue 3% Withholding on Financial Advisor Pay

Posted on November 7th, 2022 at 1:16 PM
Merrill to Discontinue 3% Withholding on Financial Advisor Pay

From the Desk of Jim Eccleston at Eccleston Law.

Merrill Lynch has announced plans to discontinue a 2019 pay cut program in a rare concession to its sales force amidst a period of elevated attrition, according to AdvisorHub sources.
Merrill will discontinue a three-year-old policy on January 1 which withheld the first 3% of revenue financial advisors earned each month from counting toward their total payout. The pay cut, which was capped at $4,000 of eligible fees and commissions, was implemented to slow a rise in compensation that was outpacing revenue. However, the policy was unpopular among company veterans, according to sources.

While competitive attrition increased to 5% in the first half of 2021, Merrill President Andy Seig stood by the pay cut program in an October 2021 town hall call where Seig claimed that the program “brought pay rates in-line with competitors.” The policy reversal appears to attempt to give advisors a boost when managed account fees have taken a hit amidst the market downturn, according to an advisor with the firm. The advisor further noted that Merrill has been earning more on client cash due to rising interest rates, but Merrill does not have to share the revenue with advisors. The pay cut from the 3% withholding constitutes a difference of nearly $505 per month for a financial advisor who generates an average of $42,000 per month.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

1780079651 Law
May 29, 2026
SEC Investigating Fraud Allegations in Private Credit Industry

The Securities and Exchange Commission (SEC) actively is investigating allegations of fraud involving private credit firms, signaling continued regulatory scrutiny of the rapidly expanding sector.

1779992462 Law
May 28, 2026
FINRA Adopts New Rules to Accelerate Arbitration for Elderly and Vulnerable Investors

The Financial Industry Regulatory Authority (FINRA) has adopted amendments to its Code of Arbitration Procedure to expedite arbitration proceedings for certain eligible parties, according to regulatory updates.

L
May 27, 2026
FINRA Sanctions Cambridge Investment Research for Supervisory Failure in Variable Annuity Exchanges

The Financial Industry Regulatory Authority (FINRA) has censured Cambridge Investment Research and ordered the firm to pay nearly $280,000 after finding that it failed to properly supervise variable annuity exchanges, according to AdvisorHub.