Merrill Lynch Wealth Management announced that its grid hurdles, payouts and growth requirements in 2021 would remain the same, AdvisorHub reported. According to AdvisorHub, Merrill Lynch felt it was important to keep the payout system largely unchanged to maintain continuity in an uncertain time.

Additionally, Merrill Lynch told advisors that the new client account requirement would remain at three households per year. The requirement was reduced from four households to three in June 2020. Next year, Merrill Lynch will also continue its policy of not paying advisors for the first 3% of monthly fees and commissions collected from clients. 

However, Merrill Lynch did make some changes for 2021. The firm will no longer payout for household accounts worth less than $250,000. Since 2012, Merrill Lynch had imposed a 20% payout rate penalty for accounts less than $250,000. Under the new policy, the payout on those accounts will be 0%.  Merrill Lynch also announced that the payout credits advisors receive for cash deposits will decrease from 4 basis points to 2 basis points.

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