Talking Points Flashcards
1
Q
Ambassador
A
- Open Architecture
- 85-90% Payout
- Admin Fee
- Clearing Fees are in lieu of ticket charges
- Admin Fees are the cost of the platform (manager due dilligence, research, sales support…)
- Unlimited Trading
- 50K Minimum Asset Level
1
Q
Errors & Omissions
A
- $330 / month per Producing Advisor
- $2m per Incident Coverage up to $10m Maximum
- Trade Errors have a $5k deductible
- All others are $10k deductible
2
Q
Describe the Transition Process
A
- Begins approximately 45-60 days prior to your target date
- Start with a fact finding call ask 5-6 pages of questions about your practice
- They will set up 10-12 phone calls to begin the education process.
- Give a preformatted spreadsheet by household
-
Household 1 is the best client.
- List type of accounts such as IRAs, brokerage accounts, cash mgt, etc…
- You can take Name, Address, Phone Number, Email & Account Type
- We are limited by privacy laws until affiliation
- You send the spreadsheet to us approx 30 days prior to join
- They start building client packets to recreate benefits
- Margin, ACH, Credit Cards, etc…
- Packets are sent to you two weeks prior to Join Date
- During this time you’ll print labels for the packets.
-
Household 1 is the best client.
- Work with Marketing on Transitional materials
- Work with Greg Mitro on entity selection, benefits, etc
- Therefore on your first day, you’re accustomed to the new forms, office is set up, computer is turned on and works, benefits are up so all you need to do is meet with clients.
2
Q
What information can you take with you as part of Protocol?
A
- Name
- Address
- Phone Number
- Account Type
3
Q
Compliance
A
- Most offices have a dedicated OSJ
- You can only monitor so much on yourself
- It’s not the business prevention department like most firms.
- They will work with you instead of against you.
- Will give new BM up to 120 days after affilation to get Series 24 or 9/10
4
Q
Independent Business Consultant
A
- Greg Mitro, recovering CPA
- Will consult on:
- Benefits
- Health Insurance
- Life & DI
- Entity Selection
- Real Estate
- Complimentary Lease Review
- Benefits
- Will consult on:
6
Q
Fixed Income
A
- Morgan Keegan Acquisition was Great for Us
-
Top 10 Muni Underwriters Nationally
- Others in Top 10 are mainly Institutional
- Number 1 Muni Underwriter in the Southeast
- Unfiltered Bond Desk on Advisors PC with access to 170 BD inventories
- Ability to call trader directly and build a relationship.
- No Mark up, Last Look
- Shock Report available to do Interest Rate Projections
- Can use Fitch, Moody’s & S&P for research and client reports.
7
Q
TA Guidelines
A
-
Loan Bonus Program
- We Pay the Money Up Front, then you pay taxes over 5 yrs.
- Split the taxes 1/20 then will be issued a 1099, we give a bonus to cover it.
- Need to be above 50% of previous firm t12 at 3.5 quarters after affiliation.
- Provide up to 4% of T12 for acat fees for clients
- It shouldn’t cost your clients for you to change firms.
- Cover State registration fees for the first year
- Pay for travel & hotel to our national conference in Las Vegas
9
Q
Marketing
A
- Operated as Award winning Ad Agency
- Not a profit center for the firm so they are approx 1/3 less than the competition.
- 125 people in the department where their main job is helping advisor build a brand.
- In house Compliance can work with you to approve quickly.
- Everything from free options to fully custom brands and websites
- $3k - $4k for a nice customized website.
- Free to $7,500+ for full branding and custom webstie.
- Social Media tools available
- Hearsay Tool makes it easy to be a guru on Linkedin, Twitter & Facebook.
- Can create your own posts with compliance turnaround typically 30 min - 2 hrs.
- Have staff or yourself take 15 min on Monday to schedule your posts.
10
Q
Passport
A
- 100% Payout net of Admin & Ticket charges
- Admin Fee - Firm Average 18 bps (12 - 25 bps)
- NTF Mutual Fund List with 110 fund families w/ no ticket charges
Ticket Charges (Can pass through to client)
- $9.95 Equities & ETFs
- $30 Mutual Funds
- $30 Fixed Income (buy side) & Options
- $25k Minimum Asset Value
11
Q
Describe the Culture at Raymond James?
A
- Service First Culture
- Home Office and Leadership view the Advisor as their Client
- Approx. 6,200 Advisors with 4,300 Home office staff
- Best Ratio in the Industry.
- When every advisor owns their clients it puts emphasise on us to provide High Service Level.
- Tom James is still a $1M advisor.
- The James Family and the employees own approximately 40% of the stock.
- Advisors represent 62% of the Revenue of the Firm
12
Q
What are the fees from RJ?
A
- Only two line items from RJFS
- Technology Cost - $230 / month per producing advisor.
- Covers all technology software programs except live quotes.
- CRM, Client Center, Folio Dynamics, Goal Planning & Monitoring
-
Live Quotes (require additional subscription)
- Market Q - Approx. $150 per month per advisor
- Thompson Reuters
- Errors & Omissions - $330 / month per producing advisor.
- Technology Cost - $230 / month per producing advisor.
13
Q
Tell me about your Transition Team
A
- 38 Person Transition team that typically likes 45-60 days prior to join date
- 2 people assigned
- Tech Consultant
- Help with hardware, software subscriptions and setting up the office.
- Handle most everything except wiring the building.
- Operations Consultant
- They will become your best friend and help move your practice
- Will provide support through the transition and up to x weeks after.
- Determined by size of team.
- Tech Consultant
14
Q
What information is required to run a Proforma?
A
- Total Revenue
- What % is Discretionary Feebased?
- Average Account Size
- Average Number of Trades per year
- Rent, Staff Costs & Insurance estimates
- Zip code so we can approximate expenses.
15
Q
What is your discretionary trading software?
A
- A lot of what we’ve done as a firm from a tech perspective was to attract discretionary money managers.
- Approx. 2.5 years ago we sent out RFP’s to a number of software companies
- Folio Dynamics
- We call it Portfolio Management Center
- Allowed us to customize and fully integrate into our systems
- Its a Research, Proposal and Trading tool
- Advisor can do block trades, drift analysis and rebalancing.
- We were on APL prior, but found this more user friendly and easier to use.
16
Q
Wealth Accumulation Program
A
- Annual reward provides incremental bonus rangin from 1% - 10%
- Above $1.5m (FY2015) Branch Managers can take as cash
- 5 year cliff vesting (RJ Issues Payment and 1099) or can redefer
- Invested in Mutual Funds
- Based on Production (see below)
17
Q
When are account fees waived?
A
- Household Assets of $500k
- Generational Accounts at $1M
21
Q
Raymond James Trust
A
- Established in 1992
- $2.5b in Assets under Management
- Minimum Account Size $500k
- Nonproprietary open architecture investment platform driven by the advisor.
- World Class Trust Administration
- Full Trust Attorney’s on staff
- They will go to client meetings with you to help close business or just consult behind the scenes.
- Payout is a 60/40 split between Trust & the Advisor
