Bank of Montreal has been cutting brokers in fits and starts over the past few weeks, according to a Financial Post
So far, the bank has let about 30 brokers go. According to the Financial Post
, the brokers were eliminated because they weren’t generating enough revenue, weren’t generating the right kind of revenue or weren’t growing their books of business at an acceptable pace.
Brokers at BMO need to bring in at least $600,000 in annual commissions in order to keep their jobs, the Financial Post
reported. But brokers also reportedly got the axe for not bringing in the right mix of business. Those whose business was more transaction-oriented and narrow in scope might find themselves looking for a new job. A source told the Financial Post
that “brokers whose business was not growing or not strategically aligned” were fired.
Brokers whose business was fee-based and offered a range of services like tax and estate planning, on the other hand, were probably safe. Fee-based operations that offer multiple services are attractive to banks because they make it easier to predict revenue and profitability, the Financial Post
BMO’s move echoes actions earlier this year at Scotiabank, which eliminated about 7% of its advisors and their assistants, the Financial Post
reported. It’s also in line with a larger strategy by banks to employ fewer advisors with larger books of business.
Bank of Montreal to cut nearly 2,000 jobs
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