Can't ACAT Certain Funds

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Aug 9, 2007 12:30 am

Any of you Indy's find on some ACATs you can't bring over a certain fund because there is no selling agreement with the fund.  What do you do?  Do you write a letter for the new client to send to the broker their leaving to liquidate? 

Aug 9, 2007 6:45 am

ACAT the moveable funds first.   Don't get the "ex-broker" involved before they are the ex-broker.


It's the same thing if you are having someone buy additional insurance and replace an old policy.  Get the additional insurance first.  Don't wake up the old broker/agent.

Aug 9, 2007 11:58 am

Why not get the ex-broker involved?  I have YET to have them sweet talk the client into staying.  If the client is convinced to move and like you why be afraid?


Because if/ when that ever happens to you, it will be painful... It happened to me two times within a couple months back in the first year or so of my career... The other FA got alerted to the ACAT and basically lied his way into keeping the accounts. Needless to say, it was traumatizing for me back then...


Now? F-it and keep moving on...

Aug 9, 2007 12:09 pm

Ferris, in most cases you are correct, but there is no benefit to getting the other guy involved if not necessary.  This is especially true for insurance.

Aug 9, 2007 1:19 pm

I do a 3-way call with the client and the ex broker. I do all the talking and have my script already prepared. The client has already signed my advisory contract and opened accounts. This usually catches the other broker off guard.


By accident one time I called and said "I'm so and so's advisor and I'm calling on his behalf. He would like you to liquidate funds x, y, and z."


The broker blew a fuse and let me have a couple of cheap shots. I then calmly said "By the way, Mr. so and so is on the line with us right now."


Silence.


That was fun...

Aug 9, 2007 1:32 pm
EDJ to RIA:

I do a 3-way call with the client and the ex broker. I do all the talking and have my script already prepared. The client has already signed my advisory contract and opened accounts. This usually catches the other broker off guard.


By accident one time I called and said "I'm so and so's advisor and I'm calling on his behalf. He would like you to liquidate funds x, y, and z."


The broker blew a fuse and let me have a couple of cheap shots. I then calmly said "By the way, Mr. so and so is on the line with us right now."


Silence.


That was fun...



Aug 9, 2007 8:03 pm
EDJ to RIA:

I do a 3-way call with the client and the ex broker. I do all the talking and have my script already prepared. The client has already signed my advisory contract and opened accounts. This usually catches the other broker off guard.


By accident one time I called and said "I'm so and so's advisor and I'm calling on his behalf. He would like you to liquidate funds x, y, and z."


The broker blew a fuse and let me have a couple of cheap shots. I then calmly said "By the way, Mr. so and so is on the line with us right now."


Silence.


That was fun...



   

Aug 9, 2007 8:17 pm
EDJ to RIA:

I do a 3-way call with the client and the ex broker. I do all the talking and have my script already prepared. The client has already signed my advisory contract and opened accounts. This usually catches the other broker off guard.


By accident one time I called and said "I'm so and so's advisor and I'm calling on his behalf. He would like you to liquidate funds x, y, and z."


The broker blew a fuse and let me have a couple of cheap shots. I then calmly said "By the way, Mr. so and so is on the line with us right now."


Silence.


That was fun...



You're an idiot. Why would any broker take an order over the phone for one of his clients, from a stranger? I think you made this whole thing up.

Aug 9, 2007 8:27 pm
blarmston:

Why not get the ex-broker involved?  I have YET to have them sweet talk the client into staying.  If the client is convinced to move and like you why be afraid?


Because if/ when that ever happens to you, it will be painful... It happened to me two times within a couple months back in the first year or so of my career... The other FA got alerted to the ACAT and basically lied his way into keeping the accounts. Needless to say, it was traumatizing for me back then...



First year or so of your career would put it in 2006?


How does a competing broker "Lie hjis way into keeping the accounts?"  What kind of lies were told?

Aug 9, 2007 8:34 pm
DAtoo:
blarmston:

Why not get the ex-broker involved?  I have YET to have them sweet talk the client into staying.  If the client is convinced to move and like you why be afraid?


Because if/ when that ever happens to you, it will be painful... It happened to me two times within a couple months back in the first year or so of my career... The other FA got alerted to the ACAT and basically lied his way into keeping the accounts. Needless to say, it was traumatizing for me back then...



First year or so of your career would put it in 2006?


How does a competing broker "Lie hjis way into keeping the accounts?"  What kind of lies were told?



I agree with my namesake.

Aug 10, 2007 9:34 am

Isn't the "ex-broker" notified immediately as soon as an ACAT is in progress?  I know we get wires here when that happens.  And the ACAT can be stopped if the broker cares.  Ultimately it comes down to how well you presented yourself to the client/prospect.  If you convinced them to move, then they'll move.  If the ex-broker gets them to stop the transfer, then you didn't do a good enough job.




anonymous:

ACAT the moveable funds first.   Don't get the "ex-broker" involved before they are the ex-broker.


It's the same thing if you are having someone buy additional insurance and replace an old policy.  Get the additional insurance first.  Don't wake up the old broker/agent.

Aug 10, 2007 1:43 pm
Devils Advocate:
EDJ to RIA:

I do a 3-way call with the client and the ex broker. I do all the talking and have my script already prepared. The client has already signed my advisory contract and opened accounts. This usually catches the other broker off guard.


By accident one time I called and said "I'm so and so's advisor and I'm calling on his behalf. He would like you to liquidate funds x, y, and z."


The broker blew a fuse and let me have a couple of cheap shots. I then calmly said "By the way, Mr. so and so is on the line with us right now."


Silence.


That was fun...



You're an idiot. Why would any broker take an order over the phone for one of his clients, from a stranger? I think you made this whole thing up.



One of the cheap shots was something to the effect "Well I won't take directions from some piss ant broker trying to steal my account..."


I have been in this business for 5 years and understand how to do this. But thanks for pointing out something obvious.

Aug 10, 2007 2:05 pm
EDJ to RIA:
Devils Advocate:
EDJ to RIA:

I do a 3-way call with the client and the ex broker. I do all the talking and have my script already prepared. The client has already signed my advisory contract and opened accounts. This usually catches the other broker off guard.


By accident one time I called and said "I'm so and so's advisor and I'm calling on his behalf. He would like you to liquidate funds x, y, and z."


The broker blew a fuse and let me have a couple of cheap shots. I then calmly said "By the way, Mr. so and so is on the line with us right now."


Silence.


That was fun...



You're an idiot. Why would any broker take an order over the phone for one of his clients, from a stranger? I think you made this whole thing up.



One of the cheap shots was something to the effect "Well I won't take directions from some piss ant broker trying to steal my account..."


I have been in this business for 5 years and understand how to do this. But thanks for pointing out something obvious.



If you understand how things work, why did YOU call and place the order? Isn't it illegal for you to try to execute a transaction at an outside BD? You are a pissant.

Aug 10, 2007 3:16 pm
anonymous:

Ferris, in most cases you are correct, but there is no benefit to getting the other guy involved if not necessary.  This is especially true for insurance.



Agreed, there's nothing to gain...