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22 Cards in this Set
- Front
- Back
- 3rd side (hint)
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"Have you read ""The LAW and How It May Protect You from 'Reverse Churning'"" in eGorilla?
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"Yes. (If "No," go to the online eGorilla archive, find Vol. 7, No. 32
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None
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What is "The Law?"
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Every contact or contact attempt with a client or prospect must produce an updated record.
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What is "Reverse Churning?"
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"Reverse churning" is the practice of putting infrequently trading Clients in fee-based brokerage accounts when it is not suitable.
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What report from Gorilla would someone print to show a regulator who wanted to see how much service a Gorilla was providing fee-based clients?
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C&P Info Report.
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How can a Gorilla prove that the service contacts shown actually occurred and were not faked?
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The CO's Daily Task Checklist instructs the CO to print a report "Today's Updates" at the end of each day and file those report in an signed and sealed envelope each week. Also in the envelope are hand-written notes from phone calls and meetings. These envelopes should not be opened once sealed unless in the presence of an attorney and regulator.
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Once an FA has converted to fees, how does their life change?
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They no longer have to generate business this month in order to get paid. They have fees coming in the door each quarter?
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When are fees paid to an advisor?
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Mostly quarterly, January April, July and October. But some companies, such as Wachovia, pay monthly.
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Why is it important to know when a fee month is?
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Because that might be a good month to buy Gorilla.
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Why should an FA with lots of clients on individually managed accounts focus more on maintaining the relationship?
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He needs to justify the fee and because a fee-based relationship is less intense than a transactional relationship and therefore there is less contact. If the level of contact drops, the client may begin to relate more toward the individual money manager.
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How big is a "Small Managed Account" seminar?
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7 people including the advisor?
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Which BGM client came up with the small managed account seminar concept?
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Mike Robertson
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Where does Mike Robertson live?
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Houston, TX
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Where are Small Managed Account seminars held?
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Very high end restaurants?
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Are they held at lunch or dinner?
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Usually lunch, but can be dinner?
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What time to they start?
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People arrive at 11:45. The seminar starts promptly at 12:00.
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How long should the advisor talk?
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20 minutes
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How does the FA get people to attend?
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The secret is in the list of people being invited. Mike hand selects his list by cross referencing at least two lists.
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What are some of the lists Mike might use to select names for his seminars?
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He might see someone written up in Houston Business and then note that they are a member of a certain Country Club. Or they might appear as a United Way Donor and a Country Club member.
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How many invitations does Mike send?
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About 200.
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Does any one follow-up with a phone call?
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Yes. Always. Mike found that sending a high quality invitation will enable a caller to get through defense screens.
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Where should the invitation be printed?
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A wedding stationer.
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Describe the addressing and postage.
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The invitations are always hand-addressed with a over-sized commemorative stamp.
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