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22 Cards in this Set

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"Have you read ""The LAW and How It May Protect You from 'Reverse Churning'"" in eGorilla?
"Yes. (If "No," go to the online eGorilla archive, find Vol. 7, No. 32
What is "The Law?"
Every contact or contact attempt with a client or prospect must produce an updated record.
What is "Reverse Churning?"
"Reverse churning" is the practice of putting infrequently trading Clients in fee-based brokerage accounts when it is not suitable.
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?
C&P Info Report.
How can a Gorilla prove that the service contacts shown actually occurred and were not faked?
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.
Once an FA has converted to fees, how does their life change?
They no longer have to generate business this month in order to get paid. They have fees coming in the door each quarter?
When are fees paid to an advisor?
Mostly quarterly, January April, July and October. But some companies, such as Wachovia, pay monthly.
Why is it important to know when a fee month is?
Because that might be a good month to buy Gorilla.
Why should an FA with lots of clients on individually managed accounts focus more on maintaining the relationship?
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.
How big is a "Small Managed Account" seminar?
7 people including the advisor?
Which BGM client came up with the small managed account seminar concept?
Mike Robertson
Where does Mike Robertson live?
Houston, TX
Where are Small Managed Account seminars held?
Very high end restaurants?
Are they held at lunch or dinner?
Usually lunch, but can be dinner?
What time to they start?
People arrive at 11:45. The seminar starts promptly at 12:00.
How long should the advisor talk?
20 minutes
How does the FA get people to attend?
The secret is in the list of people being invited. Mike hand selects his list by cross referencing at least two lists.
What are some of the lists Mike might use to select names for his seminars?
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.
How many invitations does Mike send?
About 200.
Does any one follow-up with a phone call?
Yes. Always. Mike found that sending a high quality invitation will enable a caller to get through defense screens.
Where should the invitation be printed?
A wedding stationer.
Describe the addressing and postage.
The invitations are always hand-addressed with a over-sized commemorative stamp.