raymond case
2. What is the value of a FA? Does this vary between regional broker/dealers and wirehouses? Why? Why do some pay front money and others don’t? Why isn’t front money paid to independent contractors?
Ans.
The guidance of an investment professional is essential to successful financial planning. Financial advisors play a vital role in helping individual investors reach their financial goals. Advisors can help the clients make informed decisions by understanding the client’s goals, recommend solutions and make sure that the client’s portfolio stays on track.
Yes, it varies between regional brokers/dealers and wirehouses.
Financial Advisors in Wirehouses offered investment advice and charged commissions on a trade of between 1% and 2.5%, depending on products sold. They have access to wide variety of products to deal with as they are a part of a wirehouse.
Financial Advisors in regional broker/dealers offered little in the way of advice and charged significantly lower commissions. The products and the assets that they manage is relatively low.
Firms that recruit from other competitor firms pay front money to attract financial advisors to work for their firms. In some cases, even inexperienced but potential candidates too are given front money to lure them to their firm. However, certain firms like Merrill Lynch prefer to hire fresh new financial advisors and train them rather than pay front money which costs a lot.
Independent contractors are not paid any front money as they are given mostly an independent charge on the assets they manage and the products they buy and sell. Indeed it is like running their own business under a bigger umbrella and one does not get paid front money to run his own business.
3. How does RJF make sure the “right” FAs end up in RJA vs. RJFS? Which FAs would be the right targets for Quasi? How would you make sure that they select the Quasi option? Who would not be right for Quasi? How would you make sure they don’t select Quasi?
Ans.
The guidance of an investment professional is essential to successful financial planning. Financial advisors play a vital role in helping individual investors reach their financial goals. Advisors can help the clients make informed decisions by understanding the client’s goals, recommend solutions and make sure that the client’s portfolio stays on track.
Yes, it varies between regional brokers/dealers and wirehouses.
Financial Advisors in Wirehouses offered investment advice and charged commissions on a trade of between 1% and 2.5%, depending on products sold. They have access to wide variety of products to deal with as they are a part of a wirehouse.
Financial Advisors in regional broker/dealers offered little in the way of advice and charged significantly lower commissions. The products and the assets that they manage is relatively low.
Firms that recruit from other competitor firms pay front money to attract financial advisors to work for their firms. In some cases, even inexperienced but potential candidates too are given front money to lure them to their firm. However, certain firms like Merrill Lynch prefer to hire fresh new financial advisors and train them rather than pay front money which costs a lot.
Independent contractors are not paid any front money as they are given mostly an independent charge on the assets they manage and the products they buy and sell. Indeed it is like running their own business under a bigger umbrella and one does not get paid front money to run his own business.
3. How does RJF make sure the “right” FAs end up in RJA vs. RJFS? Which FAs would be the right targets for Quasi? How would you make sure that they select the Quasi option? Who would not be right for Quasi? How would you make sure they don’t select Quasi?