MS-SB Makes Push for More Female FAs

It comes 13 year after a widely publicized discrimination suit was brought against Merrill, and the broker-dealer implemented a national account-distribution plan that included teams of advisors as a means of eliminating discrimination.

The most recent lawsuit was filed as Goodman v. Merrill Lynch & Co., U.S. District Court, Southern District of New York (Manhattan), No. 09-5841. It was brought by Goodman, who has worked for Merrill Lynch since 1992.

According to Reuters and the lawsuit, Goodman is in the top-quintile of Merrill’s 15,800 financial advisors and has been a $1-million producer for nearly a decade. She is being represented by Stowell & Friedman of Chicago.

The Bank of America, which owns Merrill Lynch, says it will vigorously defend itself and that its merit-based retention program was executed fairly and without discrimination.

“To serve U.S. wealth, you need a broker force that looks like that wealth,” says Chip Roame, head of Tiburon Strategic Advisors, a consulting firm serving the financial-services industry. “And you need to have a broker force that can capably serve the diversity of wealth.”

Recruiting efforts that further these objectives are valuable, Roame notes, but they have to be complemented by efforts to retain advisors from a diversity of backgrounds. “You can’t just hire — you also have to be committed to retaining diverse brokers with a strong retention plan,” he explains.

Creating the right work environment, i.e. a corporate culture that is truly welcoming, is also crucial to such an effort. “Hiring is just the first step,” concludes Roame. “We need to see the brokerage firms retain women, Asian-Americans, African-Americans and others.”