Merrill Lynch, a major player in the financial market is presently taking a no nonsense approach to business with its recent termination of its dealings with a top Indiana adviser with $1.3B in AUM, as the company advocates a zero-tolerance approach to brokers, who defies any key rules of the firm.
This remarkable measure of Merrill Lynch was done without prior notice to the adviser. Therefore displaying how amenable and serious the firm is in its dealing of violators of their code of conduct. Merrill justified their actions by stating that they lost confidence in the adviser, making it straightforward statement. The incident comes as a surprise, since the advisor ranked at the considerable No.1 spot in their state, ever since 2012. Notwithstanding, this fact is according to the highly respectable Barron’s Top Adviser rankings.
In regard to this matter, Merrill Lynch has publicly clarified the basis for the termination of the deal though the following announcement: “conduct including failing to discuss service level and pricing alternatives with a customer, providing inaccurate information to firm management during account reviews regarding this issue, mis-marking bond cross-trade order tickets as unsolicited and providing information to a client during an active account review that did not correspond to the firm’s records.”
This marks a change in the industry as things have changed, since in the past brokers used to be more tolerant. Back in the days, these misdeeds would have been giving a second chance. However in today’s financial world, this is not the case anymore as the industry standards get tougher, with no room for mistakes or mediocre. Such is this particular case, as Merrill Lynch lynches adviser for breaking the rules.