Bank of America is making it tougher for advisors with its U.S. Trust unit to leave. Sallie Kracwcheck, the bank's head of wealth management, has issued some new rules to make sure it will not easily lose another major advisory employee, reports Bloomberg. Recall that Michael Brown, whose clients had a net worth of $50 million, defected for a  startup recently.

The new rules, however, are stoking controversy. "Associates who choose to resign 'may be assigned whatever duties' the firm decides during a 60-day leave, according to the policy. They'll forfeit bonuses and must wait another six months before soliciting former clients or colleagues to join their new venture." Previously, they could resign after two weeks.

The new rules also make clear that U.S. Trust advisors are not part of the near-industry-standard Protocol on departing advisors and brokers. The new in-house rules require assent to the new rules as a condition of employment. No wonder someone leaked this to the press.

This is not going over well with the advisors, and it will make it harder to recruit. Some see it as a sign of weakness, an indication that the company cannot keep quality advisors in the house in any other way. There may be some watering down of the rules over the next few months.  

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