Late last week a leaked memo from Merrill Lynch talking about a hiring freeze sent shockwaves through the world’s financial community.

What most of the reports neglected to point out was that this new policy does not apply to wealth management.

The memo, co-authored by Greg Fleming, president and chief operating officer, and Thomas Sanzone, chief administrative officer said: “A global hiring freeze will be in place for the remainder of the year. This freeze covers any incremental hires including previously approved budgeted hires and replacement hires.”

It goes on: “This policy does not apply to financial advisors or client associates who the firm will continue to recruit and hire in line with business plans.”

Earlier this month, John Thain the Merrill chief executive told CNBC that its wealth management business is one of its strengths. He said: "The good news is that we have a very different mix of business than a pure investment bank. Our wealth management business, which is about half our revenues, doesn't use very much capital, doesn't take very much risk, has a great return on equity and margins, and it has been pretty immune to the ups and downs in the marketplace."

But, in a blow to the management consultancy industry, Merrill makes it clear that no new management consulting assignments may be entered into until further notice. This includes any extensions on existing arrangements.

Merrill also points out that typically, the majority of the firm’s hiring occurs during the first and second quarters of the year with the third and fourth quarters progressively tapering off.