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Screening client for strategy

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Feb 2, 2010 9:05 pm

What are other RIAs doing to "know your client"

We run a long/short strategy and have been marketing that strategy. My long term plan is to open all future accounts under this strategy. I am trying to figure out the best way to screen potential clients to make sure that the strategy is appropriate for them AND give me a paper trail.

Last thing I want is to get sued because the client didn’t understand his/her money was “at risk”.

Feb 2, 2010 9:32 pm

Investor questionnaire, and make sure that all marketing material is consistently informing of risk.  My firm faces the same challenge in that we aren’t a good fit for everybody.

Feb 2, 2010 10:02 pm

Thanks WB!

ps. I liked the dancing chick avatar better.

Feb 2, 2010 11:35 pm

I might return to the old avatar…I was just getting concerned that MLGONE was being a bad influence on me.

  Anyways, if you want anything more specific - email me.
Feb 2, 2010 11:36 pm

On a related topic, sometimes we have to fire a client when it becomes obvious that we aren’t a good “fit.”  In cases like those, I just want to refer them to either an annuity guy/gal or Mel to join his “investment club”.

Feb 3, 2010 12:42 am

I make my clients learn the strategy to the point they can recommend the trades they like off the list I send them. At that point there is no way they can say they don’t understand. My stuff can’t be replicated so I don’t worry about them trying it at home. The couple that did were begging me to dig them out within a week.