Have an account or thinking about an account with Merrill Lynch?  If you’re not bringing at least $250k to the table, you might want to think twice.  Starting in 2012 Bank of America’s Merrill Lynch division is no longer paying its advisers for new accounts under $250k.  Previously, the cut off was $100,000 dollars.

This means that none of Merrill’s 15,000 financial advisers will pursue new clients with accounts less than $250k because they won’t get paid for their effort.  Merrill will be happy to accept your “small” account but you have to question the attention you’ll receive as the thundering herd focuses on richer clients. This latest move by Bank of America herds <$250k accounts into house accounts, removing any incentive for “advisers” to support you.

Accounts with less then $250k comprise 4% of the $2.2 trillion in client assets managed by Merrill.  Owners of that $88 billion might be wise to consider gravitating away from such a big firm. These investors will be best served by smaller, more client-focused advisory firms.  (shameless plug alert:  NorthStar Capital Advisors is a small, independent company where we enjoy a personal relationship with each of our clients).

As with most service-based industries, size matters…the larger the firm and the smaller your invested assets, the less you matter.