MSSB will start making cuts in the FAA program at the end of March. There’s a new “firm minimum” production level. It varies month to month between $300,000 and $350,000 total new assets each month. According to my complex manager it’s effective right out of the gate in month one through month 36. Any FAA below the line at the end of any quarter is cut.
Basically they’re killing the women and children and firing anyone whose d*** is shorter than 9 inches.
It’s 9 inches right now, but one cold month and the shrivel could
send me out the door.
That is an interesting post. The funny thing is that most of the FAA’s inherited a boat load of accounts when all the $200-$400k producers left in the past 12 months. I’ve been out of there for about 12 months and my old office has shrunk from about 40 FAs to 18 FAs. There are a couple FAAs I know that probably inherited $15-20mm in assets each on top of the $10-15mm they already had. So when these people get asked to leave, good accounts move up the ladder and the crappy ones go to call center? What do you guys think?
From what I’ve heard, inherited accounts count as new assets. So in month 12 I think the cutoff is $4.2mm. There could be someone who didn’t inherit a single account but brought in $4.1mm getting canned, while another FAA who hasn’t brought in a penny but inherited $4.2mm keeps his job.
It’s messed up. Training is the same. Most of the people at PS2 and going to PS3 hadn’t opened a single accout, while others weren’t invited back because the quintile cutoffs were raised too much from inherited accounts.
They need to judge everyone strictly by what they bring in and not by what they were handed.
Production wasn’t an accurate word, but yes it’s just for trainees. It’s based on meeting 2 of 3 things; Total New Assets (about $350,000/month), Total Managed Assets (about $250,000/month) and Gross Production (goes up every month, it was around $75,000 for the first 12 months of production).
They’re very reasonable goals, bit one bad month and it could be all over.
Management just doesn’t get it. They give the new guys virtually no guidance or mentoring, they just tell them to go find big accounts. They create this policy even though they know that big money doesn’t move right away and that it takes time to build relationships, particulary if you are targeting businesses or 401K plans.This policy is very short-sighted.
[quote=iconsult100] Management just doesn’t get it. They give the new guys virtually no guidance or mentoring, they just tell them to go find big accounts. They create this policy even though they know that big money doesn’t move right away and that it takes time to build relationships, particulary if you are targeting businesses or 401K plans.
This policy is very short-sighted.
That is the industry in general - it is a little nutty in that respect.