In addition to his experience, Turner brought another benefit to the transition: Unlike DeMoss and Flinton, he wasn't bound by a noncompete, nonsolicit clause because of his length of service with Merrill Lynch. This enabled the team to more aggressively recruit their old clients, many of whom had been assigned to new Merrill Lynch advisors soon after their departure.

They ended up winning about 85% of the former clients who they targeted for recruitment.

The team, with assets under management of about $160 million, also benefited from the fact that they left at around the time the financial crisis, and the public vilification of Wall Street investment bankers, was at a fever pitch. "It gave us the ability to really expedite conversations with people once we left," Flinton says. "Very few people sat around and debated the idea of why we were leaving."

In a response, Merrill Lynch denied placing product ahead of clients.

"Client focus is the foundation upon which Merrill Lynch was built and it drives our success today," says LaMothe of Merrill. "Our advisors pride themselves on offering personalized, forward looking advice and they draw from one of the deepest and most sophisticated portfolios of financial solutions in the industry."

Despite the loss of some breakaway brokers, Merrill Lynch continues to attract and keep advisor talent, he added.
"We continue to attract and retain highly successful advisors, who are drawn by our vast product offering, superior technology, and most importantly, culture of putting clients first," LaMothe said.

Shaken Confidence
Nadine Wilkes began talking with her partner, Paul Weinstein, about leaving UBS to form their own RIA several years ago. At the time, however, she wasn't ready to make a move.

She had been with the wirehouse for 19 years, back when it was PaineWebber, when the company was "very client driven," she says.

That philosophy, however, seemed to change in recent years, as she felt the wirehouse dynamic was more centered on selling products directly to clients. There were times when the wirehouse completely bypassed her, and pushed products on clients without her knowledge.

"It almost seemed the company wanted to take the financial advisor out of the picture," she says.