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Welcome to The Professional Alliance, Inc.
Dear Douglas,
With yearend renewals approaching you may find yourself questioning your current broker-dealer. If you are one of the many Rep/Advisors considering a transition, this is the issue for you. You will find guidance on transition timing, common reasons for transition, and step by step guide through FINRA broker check. |
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Timing your Transition
When is it the right time?
Financial professionals seeking to change their broker dealer affiliation should carefully consider the effective date of their transfer. After Labor Day, we begin to (understandably) get more questions about whether a Rep/Advisor should transition now or delay their change of broker dealer until next year. Unfortunately, the answer isn't a simple one and making a correct decision depends a lot on the individual circumstances of the Rep, their clients and their current BD.
As you are probably aware, FINRA fees and state registrations are paid on a calendar year basis. This means that if you switch broker dealers at the end of a calendar year, you will have to pay most of your licensing fees again in January. Similarly, some Reps pay E&O premiums on a calendar year schedule. So if you've pre-paid many of your expenses this year, it may make sense to delay your transition until January. But if your revenue will more than offset those charges, making a move now may be prudent.
Another factor is paperwork management- that is, when is the best time for you to make your move? We have assisted Reps with transitions in every month of the year, and I can only say that there is no "right time" for everyone. For example, we've had accountants make the switch at the end of the year, wanting to be done with the process before tax season. But we've had other CPAs who transferred in January, knowing they would see their clients during tax season and could have the necessary account forms signed at that time. So whatever works for your situation is the way to go.
You will also want to check the timing of any quarterly payments you receive, such as fees from advisory accounts and 12b-1 trails. It's best to time your transition soon after you are paid, thereby giving yourself the maximum amount of time to complete the account transfer process. If you receive a large payment in January (typical for fee-based accounts), you'll probably want to transition in the fourth quarter.
Finally, FINRA closes in mid-December for the remainder of the year. Therefore, if you wish to transition in the beginning of January (an obviously popular month), you should have your licensing documents submitted to your new broker dealer by December 1st at the latest. |
| What is Important to you?
5 Common Reasons to Transition
It is very important that when considering a transition from one broker/dealer that you determine what your reasons are. It seems very basic, but these reasons will be your guide and help you to establish requirements for your next firm. We have provided a list of very common reasons that may apply to your situation and cause you a moment's pause. Many Rep/Advisors don't even realize it, but they have built their practice to fit their broker/dealer rather than fitting their clients' needs. Nothing could be more frustrating! In our experience the 5 most common reasons for leaving your current brokerage firms are: service, compliance, products, culture, and a change to a hybrid practice. The most frequent complaint is poor or incompetent service; this can cripple your practice. No one is perfect, but operational problems should be a rare occurrence and should be quickly resolved. Compliance is next on our list. We work in a highly regulated industry and it's imperative that you have confidence in your compliance department to guide you. Product selection is another important reason; the difference between a salesperson and a financial professional is product offerings. Culture is repeatedly voiced as an important reason to leave; sales cultures and proprietary products can cause unneeded stress. The product should fit the client not the company quota. Finally, a change of practice make-up is another frequently stated reason. Industry trends have switched to a hybrid or fee-based practice and you need platforms that will support you. Unfortunately, not every broker/dealer provides this and it is a huge cause of frustration Don't let your brokerage firm provide inadequate service, compliance, product selection, culture, or fee platforms. Find the broker/dealer for you... Click here to continue reading |
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Background Checks
One of the most important tasks you will conduct during your due diligence process is to check the compliance record of any broker/dealer you are considering on the FINRA website. This is important for mulitple reasons: reputation of your brokerage firm can help or hinder your success there, a poor compliance record usually means compliance headaches for you, and finally it can mean sanctions, loss of license, or firm closure.
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The Professional Alliance at Cambridge Investment Research is an organization dedicated to serving the needs of Rep/Advisors across the United States. Staffed with experts who have many years of industry experience, we provide our members with concierge financial services support. Don't let inadequate service and support hold your business back- call TPA today and see what we can do for you!
Sincerely,
Alana Papa
The Professional Alliance, Inc.
888-766-5550 ext. 1 |
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| Save $500 |
If you join TPA and Cambridge before November 1, 2009, we will reimburse you up to $500 towards your 2010 FINRA renewal fees*. Mention "FINRA 2010" to redeem this offer.
Call for more information 888-766-5550 ext. 1
We encourage you to share this offer wtih friends, family, and colleagues that may be interested in transitioning to The Professional Alliance atCambridge Investment Research. |
| Offer Expires: November 1, 2009
*Production Requirements Apply |
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