EDJ reps leaving the business
Just a quick question for you EDJ guys. I was wondering if someone could give me some details on the process for EDJ reps leaving the business. I am pretty sure they can not outright sell the book of business, but was wondering what the poilicies were. I thought I heard somewhere that there was a compensation plan in place for giving to other EDJ reps not sure if that is true or not. I am in a very small community that has 3 EDJ reps and rumor has it one is leaving, been in about 4-5yrs I think. I believe he is leaving due to poor production. I was trying to come up with a plan to compensate him for sending his clients my way and wanted to try and make it attractive to him, just not sure about the EDJ policies and what he might get if he transferred his clients to another EDJ rep. Thanks for the help.
If he is leaving for production issues, someone will come in and take over his office. EDJ reps don’t sell their book back, they simply leave(There is a sunset plan, but that is for long time EDJ people retiring)Your best bet is for him to get you a list of his clients and start contacting them. The idea of him being able to steer them to you could be challenging.. Of course there is questionable legality in all of that.
Yes, Jones, like most wirehouses, have a “retirement plan” where you essentially sell your book to a newer advisor (over the course of a few years). I have a good friend at Merrill that has been in the midst of one with his sone for about 3 years. Their program is almost identical to ours.However, it doesn't work quite the same when you are leaving for other reasons. Unless you are independant, you can't sell your book, since you don't own it.
Thanks guys I appreciate the info. I just wasn't sure if Ed Jones offered the option of "selling" to another Ed Jones rep. I can't imagine my small town needing 3 Ed Jones reps (11,000 pop) and this may be why he is leaving. I will see if he is interested in anything. Thanks again.
When a guy leaves he has no control over who gets his book of business. It could go to a new guy coming to the area, an existing FA, or someone from the home office. One thing is for sure, he will not be compensated for it.