Deals & People May 15, 2008

Merrill To Close Florida Consulting Practice as Result of Controversy

Merrill Lynch Consulting Services is closing down its Florida pension advisory practice.
Reported by

The Institutional Investor Money Management Letter reported that Merrill has sent letters to all its clients terminating their contacts. According to the news source, Merrill announced in December that the Securities and Exchange Commission (SEC) had started an investigation into its Florida consulting practice and Senior Vice President Michael Callaway (see SEC Looks into Merrill’s Florida Pension Consultancy Practice). The announcement was followed by a string of personnel departures.

“People have chosen to leave, and that impedes our ability to provide the same level of excellent service that our clients expect from us,” said Merrill spokesman Mark Herr, according to the news report. “We are working with them on a transition to other consultants.’

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The Miami Herald reported in December that the board of trustees for South Miami’s pension plan filed an arbitration claim alleging that, rather than looking out for the interests of city employees, Merrill Lynch pursued an investment strategy intended to generate excessive fees and commissions. Soon after, Jacksonville Police and Fire Pension Fund trustees announced the termination of the fund’s contract with Merrill. Callaway, head of the Florida consulting business, took a leave of absence. (see South Miami Pension Trustees File Claim over Merrill Consulting Practices)

Merrill has denied any wrongdoing, the news report said.

Deals & People May 15, 2008

Brinker Capital Launches Practice Management Institute

Investment management firm Brinker Capital launched an initiative providing practice management advice to financial professionals.
Reported by

The Brinker Capital Practice Management Institute will be led by H. Edward Cohen, Managing Director at Brinker Capital.

The Institute’s first tool is an FPA Practice Management Scorecard, a peer-reviewed assessment of the strength of financial advisers’ practices compared to similar peers, according to a release from Brinker Capital. It was launched this month with the Financial Planning Association, Fidelity Investments, and McLagan Partners.

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Brinker will also offer Client Opinions, a program enabling advisers to solicit and analyze client feedback. Beyond this, Brinker Capital will offer courses and workshops to help teach advisers how to more effectively manage their practices.

“We’ve long held the belief that our commitment to advisers extends way beyond providing investment management expertise to helping them build their practices, their knowledge, and their resources,’ said Chuck Widger, Chairman and CEO of Brinker Capital, in the release. “Under Eddie’s stewardship, our Practice Management Institute will help us realize this goal. We’ve designed program elements that will specifically enable advisers to better serve their clients, while planning for their own business’ success.’

Cohen has been with Brinker Capital for more than eight years, responsible for key relationships with broker/dealers and management of joint marketing efforts with portfolio managers. Previously, he was a national investment sales manager for Lincoln Financial Advisers and CIGNA Financial Advisers. Prior to that, he was a financial planner in CIGNA’s Houston office and an instructor at Rice University’s School of Continuing Studies.

See the latest Brinker Barometer coverage at Advisers Say Many Clients Need More Time Before Retiring.

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