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Sep 21, 2006 6:47 am

Got a general question about everyone that moves firm to firm.


If you've done a good job for your client, put them in suitable and great investments, what are you doing when you move them?  Telling them "Oh sorry, what we did 3 years ago may have looked good, doesn't anymore - let's sell it all and do this new thing at my new firm." 


What good are assets transferred over if they aren't generating revenue, or does everyone here have only fee-based assets and you just liquidate and swap the clients out into your new firm's SAM or whatever?  Or are you transactional so that clients are used to trading alot?


What do you do with good bond positions, good mutual fund positions?




Sep 21, 2006 7:25 am
newrookie:

Got a general question about everyone that moves firm to firm.


If you've done a good job for your client, put them in suitable and great investments, what are you doing when you move them?  Telling them "Oh sorry, what we did 3 years ago may have looked good, doesn't anymore - let's sell it all and do this new thing at my new firm." 


What good are assets transferred over if they aren't generating revenue, or does everyone here have only fee-based assets and you just liquidate and swap the clients out into your new firm's SAM or whatever?  Or are you transactional so that clients are used to trading alot?


What do you do with good bond positions, good mutual fund positions?



Why wait to change firms?  The best way to increase your income is to get your clients to sell everything they own before every long weekend during the year.


Remind them that the Mid East is a cauldron and that Israel fought an entire war over a weekend--one never wants to be long during a war.


If you do it right you can have them selling on Friday and buying back on Monday.


It's a plan worth exploring and an easy one to explain.

Sep 21, 2006 7:27 am

I should have said if you do it right you can have them so afraid of being in the market over the weekend that they dump everything every Friday and buy it all back again on Monday morning.


Use "Market on the Close" and "Market on the Open" orders.

Sep 21, 2006 9:03 am
Knows Wall St.:
newrookie:

Got a general question about everyone that moves firm to firm.


If you've done a good job for your client, put them in suitable and great investments, what are you doing when you move them?  Telling them "Oh sorry, what we did 3 years ago may have looked good, doesn't anymore - let's sell it all and do this new thing at my new firm." 


What good are assets transferred over if they aren't generating revenue, or does everyone here have only fee-based assets and you just liquidate and swap the clients out into your new firm's SAM or whatever?  Or are you transactional so that clients are used to trading alot?


What do you do with good bond positions, good mutual fund positions?



Why wait to change firms?  The best way to increase your income is to get your clients to sell everything they own before every long weekend during the year.


Remind them that the Mid East is a cauldron and that Israel fought an entire war over a weekend--one never wants to be long during a war.


If you do it right you can have them selling on Friday and buying back on Monday.


It's a plan worth exploring and an easy one to explain.



Check the liquidate on transfer box on the ACAT form, so you won't have to do switch letters.

Sep 21, 2006 9:30 am
newrookie:

Got a general question about everyone that moves firm to firm.


If you've done a good job for your client, put them in suitable and great investments, what are you doing when you move them?  Telling them "Oh sorry, what we did 3 years ago may have looked good, doesn't anymore - let's sell it all and do this new thing at my new firm." 


Why would you have to sell anything?


newrookie:

What good are assets transferred over if they aren't generating revenue, ....


The same "good" they're doing for you at current firm...




newrookie:

What do you do with good bond positions, good mutual fund positions?


You sound as though you believe a move requires liquidation of assets...


Sep 21, 2006 9:50 am

I would have never signed a 9 year deal. Not a smart move. 5-6 yrs tops.

Sep 21, 2006 10:10 am

L&T is something of the past when reps transition - most FAs will simply transfer the accounts without liquidating, unless they are in proprietary products.  Clients don't want to be charged twice for the same thing if they don't have to.

Sep 21, 2006 10:36 am
Helter Skelter:
Knows Wall St.:
newrookie:

Got a general question about everyone that moves firm to firm.


If you've done a good job for your client, put them in suitable and great investments, what are you doing when you move them?  Telling them "Oh sorry, what we did 3 years ago may have looked good, doesn't anymore - let's sell it all and do this new thing at my new firm." 


What good are assets transferred over if they aren't generating revenue, or does everyone here have only fee-based assets and you just liquidate and swap the clients out into your new firm's SAM or whatever?  Or are you transactional so that clients are used to trading alot?


What do you do with good bond positions, good mutual fund positions?


Why wait to change firms?  The best way to increase your income is to get your clients to sell everything they own before every long weekend during the year.


Remind them that the Mid East is a cauldron and that Israel fought an entire war over a weekend--one never wants to be long during a war.


If you do it right you can have them selling on Friday and buying back on Monday.


It's a plan worth exploring and an easy one to explain.



Check the liquidate on transfer box on the ACAT form, so you won't have to do switch letters.



technically I think you ARE required to get switch letters signed
......

Sep 21, 2006 10:52 am

I get the impression that most people ARE liquidating good assets - just to reinvest them at their new firm and get paid - am I wrong?


Or are most people here transaction-based?


My point is, is you have mostly a mutual fund business, and the funds and allocation are solid, and these are things you bought not that long ago, then it's really not so much how much of your assets you move over in $$, it's what products are they currently in, and what do you expect the ROA to be on those assets moved.


I can't imagine that a new firm would be interest in 20 mil in assets all that much if they were all in "A" shares at 25 bps and the broker was unwilling to liquidate all and "re-position" them into something new.




Sep 21, 2006 11:00 am
newrookie:

I get the impression that most people ARE liquidating good assets - just to reinvest them at their new firm and get paid - am I wrong?


Or are most people here transaction-based?


My point is, is you have mostly a mutual fund business, and the funds and allocation are solid, and these are things you bought not that long ago, then it's really not so much how much of your assets you move over in $$, it's what products are they currently in, and what do you expect the ROA to be on those assets moved.


I can't imagine that a new firm would be interest in 20 mil in assets all that much if they were all in "A" shares at 25 bps and the broker was unwilling to liquidate all and "re-position" them into something new.






Your very question exhibits an attitude which I fear is sadly prevalent.

Do what is right for your clients, gather new assets, and things will work out fine.  Or, perpetuate one of the biggest underlying problems in the full-service side of the business.  Your choice.

Sep 21, 2006 11:09 am
joedabrkr:



Your very question exhibits an attitude which I fear is sadly prevalent.

Do
what is right for your clients, gather new assets, and things will work
out fine.  Or, perpetuate one of the biggest underlying problems
in the full-service side of the business.  Your choice.






Do you not work on the "Full Service" side of the business?  If
not why would a guy who was able to offer "full service" consider it
advisable to transition to a role where he offers "Limited Service?"



Have you ever--as in EVER--suggested that a client make a move for no
other reason than there would be two commissions paid if he did?

Sep 21, 2006 11:17 am
newrookie:

I get the impression that most people ARE liquidating good assets - just to reinvest them at their new firm and get paid - am I wrong?


Yes, from where I sit you're wrong.


newrookie:

I can't imagine that a new firm would be interest in 20 mil in assets all that much if they were all in "A" shares at 25 bps and the broker was unwilling to liquidate all and "re-position" them into something new.



You're simply too new to the business to understand, then. The fact that you've put together a successful book (not that 20MM fits the bill) is what firms are interested in. I doubt you'll find a first-tier firm that tells a recruit "You'll "re-position" those assets, right?".

Sep 21, 2006 11:19 am
Knows Wall St.:


Have you ever--as in EVER--suggested that a client make a move for no other reason than there would be two commissions paid if he did?


You're having another flashback to the "good old days" you flunked out during....

Sep 21, 2006 11:37 am

Frankly, if I were the client and my FA wanted to L&T just to get paid again and have me pay another fee (if that were the case), I would be pissed and question this.

Sep 22, 2006 12:31 pm

Back to the ?


I moved my office to a small CO ski town last year roughly 1,300 miles away. I lost two clients in that transition!


 So far I love it in the mountains and today so far we have 11 1/2"  


of new snow!


Problem is it will not stay and the leaves have not fully turned!

Sep 22, 2006 12:54 pm
mikebutler222:

You're simply too new to the business to understand, then. The fact that you've put together a successful book (not that 20MM fits the bill) is what firms are interested in.



Mike's right. It's not unusual for somebody with $20MM of low-velocity AUM to change firms.  They just don't get up-front deals the way more established brokers do. 

In fact, sometimes they want low LOS brokers to leave some or all of their books behind.  Rather than focus on maintaining a couple hundred $30,000 accounts, they pay you a base to go build a HNW book over the next year or two.