The largest brokerages are pulling away from everything that's small in the pursuit of bigger profits. As On Wall Street Senior Editor Andrew Welsch writes in his story on compensation, firms are increasingly pursuing strategies for advisors to make more money that favor larger accounts.
It's not a new trend. Two years ago, Welsch writes, UBS raised minimum account sizes to $100,000 from $75,000. Last year, Merrill Lynch told its 14,000-plus advisor force that they would be paid 20% on accounts of $250,000 or less if those accounts made up less than a fifth of their overall book of business. Advisors won't get any payment if such accounts represent more than a fifth of a book of business.
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