Just Left my B/D....Need Advice

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Jan 31, 2006 11:37 am

That regional bank I had written about (the one with the preferred
mutual funds selling list, couldn't sell stocks/closed ends, no wrap
accounts, no morals, etc.) and am trying to decide where to go from
here. Anyone care to share with me what firms to avoid, and what firms
FA's are actually happy with? I'd like to hear from Wirehouse, Bank
Brokers (I'm in S. Florida) and Indies as well. Thanks..

Jan 31, 2006 11:39 am

Why did you get fired? That will shape the direction that we give you.

Jan 31, 2006 11:47 am

Always coming through with a smart a** remark instead of something of
substance. Why don't you go back into the hole you came out of Dirk!!

Jan 31, 2006 11:56 am
TOPBROKR:

Always coming through with a smart a** remark instead of something of substance. Why don't you go back into the hole you came out of Dirk!!


This would be a great opportunity to mention your mother, but I have too much class for that.


The reason I ask is that I've never heard of a top broker, such as yourself, leaving a firm without another one to go to. Why did they fire you? The answer to that question makes all the difference in the advice that you will receive. Tell us the truth about what happened and we will give you the best advice that we can.

Jan 31, 2006 1:51 pm

You have several choices.  You can apply at a regional or national firm or independent firm.  Where you end up will depend on your production level.   Here is a link to a survey of independent firms.  They tend to allow lower production than say, Morgan Stanley or elsewhere.  Registered Rep usually has a good summary of all the different B/D out there.   I'm sure that some one (maybeeeeeee ) from Raymond James or LPL would be happy to give you the lowdown on their firms.


http://www.securitiesamerica.com/downloads/FP05_BDSurvey.pd f


Ignore the Securities America highlight I just copied the link from google. 


You should move fast because the b/d at the bank is probably churning your clients as we speak and telling them bad things about you. 


Jan 31, 2006 3:04 pm
TOPBROKR:

Always coming through with a smart a** remark instead of something of substance. Why don't you go back into the hole you came out of Dirk!!


I think DD was actually asking a serious question bro....

Jan 31, 2006 3:16 pm

Obviously, you're in a bad position.  If you did leave on your own, I'm at a loss to understand why you did it without some pre-planning, as Babaloo is right...your old employer is at a distinct advantage right now because of how you left.  Frankly, you've given you clients no alternative but to not follow you at this point, and I can promise you, it will definitely get tougher as time goes on.  You'd better find a place to land and quick...

Jan 31, 2006 4:14 pm

Long story short- things came to a head with my district manager and I resigned. That's the deal- Dirk. My clients are willing to wait the time until I have a new home- they have been complaining about this firm since shortly after I landed there.

Jan 31, 2006 4:46 pm

No doubt it sucks, but bank books are not that portable, especially if they're

full of annuities. Judging from your previous posts, thats what it sounds like

you focused on.

Jan 31, 2006 4:53 pm
skeedaddy:

No doubt it sucks, but bank books are not that portable, especially if they're full of annuities. Judging from your previous posts, thats what it sounds like you focused on.


I don't know, skee...my book has been pretty portable thus far and six months in, I still have 2-3 old clients call me every week wanting to move.  I've moved most of my variable annuity business already.  One fixed annuity company did reject my change of B/D because of a contract with the bank, but that's been the only real snag thus far...otherwise, I've gotten about 80% of what I wanted thus far...

Jan 31, 2006 4:57 pm
TOPBROKR:

Long story short- things came to a head with my district manager and I resigned. That's the deal- Dirk. My clients are willing to wait the time until I have a new home- they have been complaining about this firm since shortly after I landed there.


OK, tell us a bit more about your business...AUM...trailing 12 month's production, percent that you are confident will leave once you are established, and whether you have interest in going indy or staying in an employment relationship somewhere else.  Also, what you are looking for in a B/D.

Jan 31, 2006 5:18 pm
Indyone:

I don't know, skee...my book has been pretty

portable thus far and six months in, I still have 2-3 old clients call me every

week wanting to move. I've moved most of my variable annuity business

already. One fixed annuity company did reject my change of B/D because of

a contract with the bank, but that's been the only real snag thus

far...otherwise, I've gotten about 80% of what I wanted thus far...




What is trail commission rate on those annuities?

Jan 31, 2006 5:19 pm

50-100 bps

Jan 31, 2006 5:28 pm

Okay, that's more than I expected to hear. Annuities are not my area of

expertise, but I thought that most of the time advisors opted for a larger

upfront compensation and no trail. That's pretty good to hear.



I've seen others come over with huge trailing 12s and experience difficulty

bringing those assets over.

Jan 31, 2006 5:43 pm

Some do, but I take 4% now and get a 1% trail in year 2 on what I'm using now.


On the difficulty of transferring, if you don't take the time to forge a good relationship with the clients you want to transfer, I can see where it can be tough to get loyalty...particularly if you inherit a substantial part of your book...

Jan 31, 2006 7:06 pm
TOPBROKR:

Long story short- things came to a head with my district manager and I resigned. That's the deal- Dirk. My clients are willing to wait the time until I have a new home- they have been complaining about this firm since shortly after I landed there.



We're getting closer to the truth, now. Did you resign or were you "permitted to resign"? In other words...if you hadn't resigned and you had shown up at your desk today, would you have been allowed to stay? Again, we need to know this to help you. Don't worry...nobody knows who you are. Just tell the complete truth.

Jan 31, 2006 7:09 pm

There really isn't much difficulty in transferring clients.  You just have to do it one at a time.  No bulk transfers.   Fixed annuities are pretty easy. All you need to do is to sign a new selling contract with the insurance company and do an agent change on the contract.  Even if you don't get any trails you will WANT to do this so your fixed annuity clients are no longer on the Bank's radar.  That way you will be in control of those assets.


The VA side depends on if your new B/D has selling contracts.  If they don't you may still be able to do an agent change and only be able to service the contract...not add new money.  I ran into that with EDJ.  Some of the contracts, both VA and fixed, were proprietary.


I'm an independent so on the fixed side and for other insurance products I have teamed up with another agency so I am not my own agency but am on some one else's grid.   Fixed business and other insurance (life, ltc, medicare sups) are counted as outside business by my B/D.


If you have a non compete with your Bank you will want to be careful about how you go about contacting you previous clients. They can sue your butt. When I left EDJ I took about 70% of the assets (they closed the office eventually ) but it took about 6 months total to do it.  I didn't have any problems with them.


By going independent I more than doubled my income in the first year of freedom.

Jan 31, 2006 9:18 pm

how many assets did you take with you?

Jan 31, 2006 10:19 pm
babbling looney:

There really isn't much difficulty in transferring clients.  You just have to do it one at a time.  No bulk transfers.   Fixed annuities are pretty easy. All you need to do is to sign a new selling contract with the insurance company and do an agent change on the contract.  Even if you don't get any trails you will WANT to do this so your fixed annuity clients are no longer on the Bank's radar.  That way you will be in control of those assets.


The VA side depends on if your new B/D has selling contracts.  If they don't you may still be able to do an agent change and only be able to service the contract...not add new money.  I ran into that with EDJ.  Some of the contracts, both VA and fixed, were proprietary.


I'm an independent so on the fixed side and for other insurance products I have teamed up with another agency so I am not my own agency but am on some one else's grid.   Fixed business and other insurance (life, ltc, medicare sups) are counted as outside business by my B/D.


If you have a non compete with your Bank you will want to be careful about how you go about contacting you previous clients. They can sue your butt. When I left EDJ I took about 70% of the assets (they closed the office eventually ) but it took about 6 months total to do it.  I didn't have any problems with them.


By going independent I more than doubled my income in the first year of freedom.



Words to live by!


One point of contention though. I wrote tons of fixed annuities in 01 and 02 and have found them problematic to move from the bank. It was a stretch to get some of these customers out of CD's, now trying to explain why I moved and why the firm doesnt have a name they recognize just isnt worth trying to explain once you get to the third time around on the phone. My actual investment clients are coming over, but very slowly and carefully as Babs suggested.

Jan 31, 2006 11:17 pm
Dirk Diggler:
TOPBROKR:

Always coming through with a smart a** remark instead of something of substance. Why don't you go back into the hole you came out of Dirk!!


This would be a great opportunity to mention your mother, but I have too much class for that.


The reason I ask is that I've never heard of a top broker, such as yourself, leaving a firm without another one to go to. Why did they fire you? The answer to that question makes all the difference in the advice that you will receive. Tell us the truth about what happened and we will give you the best advice that we can.



   Just noticed the boldfaced line....holy hell dirk that one was a true classic and one of your best!