UBS - Layoffs
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Just had my meeting. Manager was nice and was trying to help me find something too. He had a list of all my accounts which he gave to me and asked what FA I would like (trusted) to have larger accounts reassinged to until I finalize my deal at an indie. That is about as much as you can ask for. 1.5 years in production 13.5mm in assets. I actually did foresee a downturn in the market so my clients were 50+ % in cash, short treas, munis and I used covered call strategies (PBP etf and GATEX) so my revenues were weak. I was supposed to be evaluated based on rev or assets but an “at will” contract means they can change the rules. But I still have my integrity and did the right thing for my cliens and they have called and thanked me.
BTW I was in executive management and middle mangmet at indies a few years ago -25 years in the biz (before I decided to downshift and not travel 80%) and have stayed on top of the indie platforms. The support is sooooo much better than a wire or bank. You are the indie's client and they work for you (if you pick the right BD-the larger ones dont care who you are). We bent over backwards to make sure the FA was happy. Plus compliance was flexible within the rules and no unnecessary regs. I am not even thinking of a regional, bank or another wire. After all expenses you still net 50-75% depending on production on how well you control costs. The biggest cost is an office and asst. Smaller reps like myself will not even need an asst for now. I will bring about 12 clients and8-10mm with me and meet clients in a friends accounting office and network with their clients. Indie or Fee only is the way to go unless you need a check (a deal with the devil). BTW you can do fee only at a indie and still get paid 12b1s-cant do that at Schwab. BTW I am in SE.Ugh…that was harder than I thought. No matter how much you think you are prepared for it or how nice they are, it feels like crap. Ah well…the sun is out.
[quote=kudzu]Just had my meeting. Manager was nice and was trying to help me find something too. He had a list of all my accounts which he gave to me and asked what FA I would like (trusted) to have larger accounts reassinged to until I finalize my deal at an indie. That is about as much as you can ask for. 1.5 years in production 13.5mm in assets. I actually did foresee a downturn in the market so my clients were 50+ % in cash, short treas, munis and I used covered call strategies (PBP etf and GATEX) so my revenues were weak. I was supposed to be evaluated based on rev or assets but an “at will” contract means they can change the rules. But I still have my integrity and did the right thing for my cliens and they have called and thanked me.
BTW I was in executive management and middle mangmet at indies a few years ago -25 years in the biz (before I decided to downshift and not travel 80%) and have stayed on top of the indie platforms. The support is sooooo much better than a wire or bank. You are the indie's client and they work for you (if you pick the right BD-the larger ones dont care who you are). We bent over backwards to make sure the FA was happy. Plus compliance was flexible within the rules and no unnecessary regs. I am not even thinking of a regional, bank or another wire. After all expenses you still net 50-75% depending on production on how well you control costs. The biggest cost is an office and asst. Smaller reps like myself will not even need an asst for now. I will bring about 12 clients and8-10mm with me and meet clients in a friends accounting office and network with their clients. Indie or Fee only is the way to go unless you need a check (a deal with the devil). BTW you can do fee only at a indie and still get paid 12b1s-cant do that at Schwab. BTW I am in SE. [/quote] Sorry to hear about your situation. The most disturbing part about this is that 13.5 MM AUM 1.5 years in should put you in the first Quintile and is exactly what you should be doing if you are going to coming the million dollar producer. UBS will regret losing you. Good luck and I wish you very prosperous times in the future!My assets were good but trailing 12 was 50. That would get better as the market stabilized. They were soley looking at production and profitability. Doesnt take a genius to figure I was not profitable. 2.5 mm was to be wired in this week for bonds. Oh well, things are picking up and my trailing 2 months will be 17k. I will be better of indie. I have a series 8 and 24 so in addition to personal production I will try to put together a bunch of FAs that are being let go or forced out at all the wires and negotiate some good indie payouts for everyone. There are a lot of good ethical advisors out there that may not have the greatest production (according to the wires) but I would actually trust them with my own money. Production is not the only metric to judge a “good advisor” Long live the “real” good advisors!!! If you do what’s right, production and longevity wil follow. One last ramble-Never think you know everything because a bull market makes geniuses out of idiots and a bear market makes idiots out of geniuses. Good luck everyone!
[quote=kudzu] Just had my meeting. Manager was nice and was trying to help me find something too. He had a list of all my accounts which he gave to me and asked what FA I would like (trusted) to have larger accounts reassinged to until I finalize my deal at an indie. That is about as much as you can ask for. 1.5 years in production 13.5mm in assets. I actually did foresee a downturn in the market so my clients were 50+ % in cash, short treas, munis and I used covered call strategies (PBP etf and GATEX) so my revenues were weak. I was supposed to be evaluated based on rev or assets but an “at will” contract means they can change the rules. But I still have my integrity and did the right thing for my cliens and they have called and thanked me.
BTW I was in executive management and middle mangmet at indies a few years ago -25 years in the biz (before I decided to downshift and not travel 80%) and have stayed on top of the indie platforms. The support is sooooo much better than a wire or bank. You are the indie’s client and they work for you (if you pick the right BD-the larger ones dont care who you are). We bent over backwards to make sure the FA was happy. Plus compliance was flexible within the rules and no unnecessary regs. I am not even thinking of a regional, bank or another wire. After all expenses you still net 50-75% depending on production on how well you control costs. The biggest cost is an office and asst. Smaller reps like myself will not even need an asst for now. I will bring about 12 clients and8-10mm with me and meet clients in a friends accounting office and network with their clients. Indie or Fee only is the way to go unless you need a check (a deal with the devil). BTW you can do fee only at a indie and still get paid 12b1s-cant do that at Schwab. BTW I am in SE. [/quote]
kudzu,
I’m at a SE regional BD that operates and indie channel. I’d be glad to share some information about us if you would like. Just send me a PM.
I’ve been lurking here for about a week. I got axed on Tuesday in the midwest. Just started my 3rd year in the NFA program and just didn’t have enough assets (11 Million plus). I can’t understand why they kept any NFAs though… seems some under 1 year were kept. Anybody know why? Leaning towards the banks programs - hey, that’s what UBS was pushing anyway… more banking products and services…
Is it over? Far from it. Cutting was happening again today. I’ve yet to be wrong on this. It’s simple. Keep in mind… this was a large RIF this week. Further cuts won’t be a large scale RIF (reduction in force), rather, one FA here, one there based on failure to hit specific targets based on region. Many FAs who were not cut but who are not in the corner office are about to be given the royal penalty box and performance improvement plan treatment. I’m sure there’ll be many who again say, 'I can’t believe this is happening to me". Be forewarned. Wires are not recruiting and don’t want people who cannot lift into the top 2 quintiles very fast. This sucks for everyone. I know some of my friends who happen to be on higher ground at UBS who are pretty pissed about seeing their buddies they’ve known for years treated like garbage this week.
All of you guys gotta remember, success is the best revenge. Wirehouses make notoriously bad decisions, get a new seat and work your butt off for your clients. You are all a lot wiser about the markets and this industry. Best of luck.
"pissed about seeing their buddies treated like garbage," Common sense to me is this part of a plan to leave the business for UBS in the US. But to agree with your comments, I know couple guys their who were around 750K, around 500K now, that are really pissed off, both were telling clients today they are getting ready to leave UBS due to recent events. I dont think UBS cares, but if they do I think they are going to lose 1000's of guys over this. Well See.Is it over? Far from it. Cutting was happening again today. I’ve yet to be wrong on this. It’s simple. Keep in mind… this was a large RIF this week. Further cuts won’t be a large scale RIF (reduction in force), rather, one FA here, one there based on failure to hit specific targets based on region. Many FAs who were not cut but who are not in the corner office are about to be given the royal penalty box and performance improvement plan treatment. I’m sure there’ll be many who again say, 'I can’t believe this is happening to me". Be forewarned. Wires are not recruiting and don’t want people who cannot lift into the top 2 quintiles very fast. This sucks for everyone. I know some of my friends who happen to be on higher ground at UBS who are pretty pissed about seeing their buddies they’ve known for years treated like garbage this week.
I got the ax as well. Does anybody know how to go about acquiring a series 24 or 8. Want to open own office and am going to study for these exams. Wasn’t sure if I needed to be sponsored by a firm or what? Need some help.
Terrier,
please stay away from the banks!!! you’ll kill your self 'cause it sucks so much. look at the mutual, specifically MassMutual. Yes you have to sell an insurance prod or two but you have COMPLETE and TOTAL autonomy on how to build your business so if you want to do 90% investments you can. and the myth that you don’t have access to the wirehouse type products is wrong because you have access to everything except for structured products and alternative investments, but you wouldn’t have access to that at a bank anyway. point is, if you are willing to go to a bank, then at least look at one of the non-captive mutuals or insurance companies too.
Good luck to all you UBS guys and gals,and if I were you I would be talking with all the indy’s and regionals…SF, RJF etc etc.
Find a home before the seats are too hard to get if you have a decent amount of assets that you can bring you may get brought on. Whatever you do don’t go to a bank or wirehouse…you will just end up in the same predicament again.
and regarding why the new NFAs (18 months or less)were not laid off…it’s simple…because they will fail out of the business within the next couple of months anyway so why lay them off and have to pay portion of their unemployment. it is cheaper to keep them and let their month 7 or 12 or whatever come up and tell them they are not cutting it and force them to resign.
Bravo Kudzo, for having integrity and doing the right thing for your clients. I am in the same boat;got booted in 8th month of production. Was in high tier on my last evaluation in January but I guess the firm decided to change the rules and within a couple of months of being near the top in NNA, I now have gotten the boot. But I am proud that I kept my client’s nest egg’s safe, they are so grateful, and I wouldn’t change a thing (like getting revenue off of them just to save my job). I think you and I should should start a new firm that actually really does put their clients first and preserves capital.
Contact FINRA. You may be able to register to take the exam without bd affiliation. If you pass the exam, you have 2 years to become affliation with a registered bd or your license will lapse.
mjp123…please see my posting under Indiana Jones. Contact FINRA. I you may able to register for the exams without a current BD affliation. If you pass the exam, then you probably have 2 years to become affiliated with a registered bd or else your licenses will lapse. And if that happens, you would have to re-qualify by examination. FINRA has a website, and a customer service telephone number.
Best of luck---IndianaJonesI went on an interview iwth a MassMutual GA, and i got to say, am impressed. anyone know if they hold UBS structured products?
Where are all the newbies going, i am guessing that they don’t have the production numbers to get them anywhere(not to mention no one is hiring)?