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44 Cards in this Set

  • Front
  • Back
Name four independent firms.
LPL, FSC, Commonwealth, First Allied
What is a broker/dealer?
It is a FINRA Member firm that buys and sells mutual fund shares and other investments.
Which insurance companies are major owners of Independent firms?
Transamerica, AIG and Pacific LIFE
Do all broker/dealers have advisors who sell their products?
No. Some broker/dealers enable customers to buy and sell electronically. E*Trade and Ameritrade are two well-known electronic broker/dealers.
What is an abbreviation for broker/dealer?
What is a wirehouse?
A national or regional firm that originally specialized in individual stocks and bonds. Wirehouses originally mostly sold stocks and bonds. Their sales people were called stockbrokers.
How do you pronounce ING?
You say its letters, I-N-G just like you would say I-B-M.
Where did the term wirehouse come from?
From the days firms were connected by telegraph wires.
Name the seven national wirehouses.
Merrill Lynch, Morgan Stanley, UBS, and Wells Fargo
What is a regional firm?
It’s a wirehouse that covers a region of the country.
What are some regional wirehouse firms?
RBC Dain Raucher, Janney Montgomery Scott, DA Davidson.
What is an advisor called at Merrill Lynch and Smith Barney?
Financial Advisor
What is an advisor called at Morgan Stanley?
Financial Advisor
What is an advisor called at Wells Fargo
Financial Advisor
Where have independent agents typically started in the industry?
They have typically come from one of two places—insurance agents who have then gotten licensed to sell securities or wirehouse advisors who “went independent.”
What titles might reps in a Wirehouse be awarded?
Senior Vice President, Vice President, Associate Vice President.
What is the biggest advantage an independent has over a wirehouse advisor?
They can make more money because they have a higher payout.
On what are the titles based?
Revenue generated
When do you ever use the term “Broker?”
How do we refer to our clients?
Why don't more wirehouse brokers go independent?
They are afraid the wirehouse will keep most of their clients or they don’t want the hassle of running their own business.
How do we refer to reps in general?
FA’s which stands for Financial Advisors
Would we ever recommend someone change from one firm to another?
Never. We have friends on all sides of the streets and would never do that. It can get you fired.
What is an RR?
Because they are registered with FINRA, after passing either the Series 6 or Series 7 exam, they are called a Registered Representative. Even though this term appears in the Gorilla program, we no longer use it.
The term RR seems to be used in a lot of BGM documentation. Is it OK to use that term?
No, we are replacing that terminology with FA and Financial Advisor.
Where do bank advisors usually work?
Typically, the bank advisor will be assigned one or more branches that he or she must “cover.” “Cover” means be in some or all of the week.
What term should I use?
You can use FA (Financial Advisor)
Which exam must reps in a wirehouse take?
Series 7
What are the benefits for an advisor working in a bank?
New clients referred by tellers and loan officers.
Which exam must reps in an Independent firm take?
Series 6 or Series 7
What is an independent firm?
It is a firm that normally only processes orders and handles compliance for advisors. Advisors are responsible for their own office expense, staff, stationery…everything. They pay all their own expenses.
How does a bank environment supply new clients?
A bank advisor is typically assigned one or more branches. He or she cultivates the tellers and loan officers as referral sources. In many banks, they can call bank customers.
When an FA tells you he or she has a large number of clients (many hundreds or even a thousand or more) and relatively low production (say, $200,000), what do you know?
Most likely, this is a bank advisor.
Why do bank brokers typically have lots of customers and low revenue?
They have opened so many accounts that they have not had the time to develop a significant relationship with more than a few clients.
What is the primary benefit of “the system” to a bank broker with lots of clients and not much revenue?
Develop these customers into clients and capture all the assets they hold outside.
What are the two key questions to ask a bank advisor?
How many clients do you have? Ballpark, what is your gross production running?
What is the Bill Good Marketing System?
A computer-based, client marketing, prospecting and practice management system.
What does RIA stand for?
Registered Investment Advisor
What is an RIA?
It is an advisor who is registered with the Securities and Exchange Commission and who manages money for a fee.
Can an RIA charge a commission?
What are the two basic ways an RIA raises money to manage?
Through his or her own efforts or through the efforts of other advisors who send their client’s money to him or her.
What are the advantages for a Registered Rep giving up his or her licenses and becoming an RIA?
Less regulation
Does BGM have any clients who that raise money through other advisors?
We have at least one, Polen Capital Management. David Polen is one of the top money managers in the country.
If an RIA wants to manage money through their own marketing efforts, what tools of the system will be most useful?
Seminar marketing