In order to better compete with online retailers like Fidelity Investments and Charles Schwab, Merrill Edge Advisory Center will be significantly expanded by its parent, Bank of America Merrill Lynch.  The plan call for 600 financial solutions advisors ("FSA's") to be hired over the next 3 years;  the company currently has 100 FSA's.  One key difference between Merrill advisors and Merrill Edge FSA's, is that FSAs don't earn commissions, but are paid a salary.

Merrill Edge was built in 2000 for customers with less than $250,000 in assets to invest.  It grew out of a phone and customer service platform for retail investors.  Rich Steinmeier is the managing director. 

    Keeping Up With Competition.   Fidelity and Charles Schwab dominate the market with 12.4 million and 7.9 million online investment accounts, respectively.  E*Trade is third with 3.7 million.  Merrill Edge currently has 1.4 million.  In 2009, online brokerages captured 17% of the overall brokerage market, all according to a study by research firm Aite Group.  BA-ML expects Merrill Edge to grow 20% - 30% each year for the next 3 years, and would translate into 1 million new customer accounts. 

    What's an FSA?   According to the WSJournal, FSA's help customers self-direct their investments and provide recommendations and advice on securities, mutual funds and other products.  Merrill Edge is looking for candidates with a Series 7, and ideally a Series 66, though the bank will get applicants licensed for the latter if need be.  Certified Financial Planner (CFP) and Chartered Financial Analyst (CFA) certifications are beneficial but not required.  The venture is looking to recruit candidates with investing experience and will bring on those who have acted in licensed roles at the firm's competitors.

FSA's receive salaries and some performance incentive, but don't earn commission and don't own books of business.  Still, they're expected to perform similar client services as regular FA's, and will be called upon to sit down in person with clients and craft specific investment plans.  The ability to transition from FSA to FA is a possibility.   [WSJ's FINS.com, 12/7]