Wednesday August 5, 2015

Size: px

Start display at page:

Download "Wednesday August 5, 2015"

Sharyl Barrett
5 years ago
Views:

1 Wednesday August 5, 2015

2 All checks received must be submitted within 24 hours Provide confirmation of date mailed and method of delivery (U.S. Postal Service, Federal Express, UPS, etc.) Consider using the ACH form with Void Check to avoid constructive receipt rules

3 ADV Part 2 is the firm document and must be given to the client at time of sale ADV Part 2 Supplement is the reps resume and must also be given to the client at the time of sale Reps must promptly notify HBW Advisory of any changes that should be made to their personal ADV Part 2 Supplement

4 Within 30 days of being accepted by the firm, you must submit the following items for prior approval (before use): Business Cards use template created by Joe Bonanno Letterhead Fax Header Signature Websites use Addison-Clark Online Social Media Facebook, Linked-In, Twitter, etc. Ads use ads from our partners refrain from creating your own ads Newsletters use third-party providers that are FINRA compliant If you are dually registered, all advertising materials must be reviewed and approved by both HBWAS and HBWS

5 Business Social Media through Smarsh Social Media monitored IAR s may only use LinkedIn NO Testimonials or Endorsements

6 Fiduciary Duty Make sure you are using the NEW Suitability form. The form must be signed by both the client and the advisor.

7 TCA privacy and protection letter Welcome letter provides clients with account login instructions No confirmations Only quarterly statements

8 When Clients leave $50 fee to close out the account. $25 to mail check. ACAT transfers out are not recommended due to the cost of $25 per position and holding the position may not to be in the best interest of the client. Also the cost of the sell at the new custodian most likely will be more than the $2.95 per position cost to sell at TCA, if TCA charges anything at all. Clients must open a new account and have the new custodian send the required paperwork in good order to transfer the funds out. HBW/TCA cannot assist.

9 Suitability is one thing, however, you are held to a fiduciary responsibility that requires you to always put the clients best interest ahead of your own Fixed Index annuity replacements - prove they are in client s best interest Transfers/Direct Rollovers copy of the clients most recent statement must accompany all transfers 401(k), IRA, Annuity, etc., show all living/death benefit riders Provide as much information as possible

10 Complete the 401(k) Direct Rollover Suitability Questionnaire form when moving money from a 401(k), 457(b) or 403(b) Pay particular attention to those separating from service between ages 55 and Every item on the form must be carefully considered before recommending that the client rollover their company sponsored retirement plan Provide as much information as possible

12 Provide hand-written letters from clients when living/death benefit riders are greater than surrender value or any other detrimental consequences are involved in replacement Document, document, document Use Redtail CRM to keep articulate notes and know your client Use emoney to gather as much information as possible to see your client s entire financial picture Never make recommendations until doing a full analysis of the clients entire financial situation, their goals and objectives

13 Fully disclose source of funds. Provide most recent statement for transfers and rollovers Never recommend a client surrender their Annuities to avoid disclosing source of funds. If a client surrenders their annuity you cannot indicate the source of funds as checking/savings Never recommend a client to liquidate an IRA to do a 60 day Rollover New IRS Rule Never accept cash

14 Never save forms they change constantly Always obtain forms from the respective websites including HBW Advisory forms

15 Always participate in the live webinar training whenever possible (Tues & Thurs) You must be engaged (actively involved) in the business. This is not a Spare-Time business Always stay up-to-date and informed Change is constant Don t assume that you know it all. Put your ego away. Be professional If you cannot attend the webinars live for any reason (should be an exception, not the norm), watch the recorded webinars within 48 hours

16 The Firm must be registered in States our Representative s are soliciting business in and/or have clients in. Most States do not require fingerprinting at this time FL allow 30 days must be fingerprinted even if 6/63 or life licensed in FL AZ must be fingerprinted if not 6/63 licensed

17 Most States do not require non-resident registration for Rep s at this time TX and AL require non-resident registration prior to soliciting business there Complete the NEW Request for State Registration Exemption form when you want to conduct business in a state you currently don t have a residence or office presence in.

18 Rep Non-Resident State Registration

19 Must submit form when opening a new account outside of HBW Advisory Services Must submit a copy of the quarterly statement or the Personal account form available in the Written Supervisory Procedures found our website on the Compliance tab

20 Files and records are kept at the Home office Files and blotters do not need to be maintained by the IA s Don t forget the rule for providing confirmation of checks being mailed use the ACH form with void check whenever possible

Multi-Level-Marketing (MLM) programs are problematic are not likely to be

21 Must submit for approval prior to engaging in activity Please allow plenty of time for approval OBA s that involve financial transactions with the public or Multi-Level-Marketing (MLM) programs are problematic are not likely to be approved The firm is required to monitor and supervise all OBA s approved by the firm

22 Hourly/Fixed Fees for Financial Planning, Retirement Planning, Estate Planning, etc. All invoices must be reviewed and approved by the compliance department prior to sending to the client. Include the client s current fee contract and current statement if applicable All checks collected for hourly/fixed fee billing must be accompanied with current fee contract and current account statement if applicable

23 Effective September 1, 2015, our ADV no longer permits HBWAS Advisors from entering into new client agreements for fixed/hourly fee billing for actively managing/effecting trades in outside company sponsored retirement accounts. Three Options Available 1. Use any 3 rd Party TPA that has a service agreement with HBWAS 2. Use subscription service through 401(k) Wealth Engine 3. Charge an hourly/fixed fee for reviewing and providing advice on a client s outside company sponsored retirement account(s) in which the client effects the trades.

24 Establishes expectations Focuses the Rep s attention on acquiring and servicing clients, rather than on non-productive activities such as creating ads, power points, writing blogs, doing social media, etc., Mitigates stretching of our resources and ability to properly monitor and supervise our Representatives As a Firm, we want to build with those that are plugged in and see this as their career, not something part or spare-time. Rep s meeting minimum AUM requirements are less likely to be desperate for money and do anything that can hurt our reputation Rep s that are focused on acquiring and retaining AUM are more likely to utilize our HBW Client First (emoney) and Redtail CRM software to obtain the info they need to know their clients and make proper recommendations In general, accumulating AUM s leads to Rep s having fewer OBA s - putting the firm at less risk

25 1 st year with the firm: $500,000 in new AUM for the calendar year or have $10 Million of AUM 2 nd year with the firm: $750,000 in new AUM for the calendar year or have $10 Million of AUM 3 rd year and on with the firm: $1,000,000 in new AUM per calendar year or have $10 Million of AUM Reps that fail to meet the Minimum AUM Requirements are subject to non-renewal by the firm. Extenuating circumstances are always considered. Reps earning a minimum of $50,000 per year through HBW and its affiliate companies may be allowed temporary relief of the minimum requirements (subject to $500,000 min AUM) provided their intent is to meet the minimums within a reasonable amount of time.

26 Must be completed for renewal Don t just initial and sign. Take time to carefully read it. If there is anything you don t understand or have concerns or questions about, contact the compliance department to discuss.

27 You have just completed the: HBW Advisory Services LLC! Q&A Session (800) x163

28 Please proceed to the Network Reception Salon H-I 4:30pm 6:30pm Thank you!

Conducting an Annual Compliance Review Session 11 Trading Records, Portfolio Management Records, Financial Planning

Conducting an Annual Compliance Review Session 11 Trading Records, Portfolio Management Records, Financial Planning Copy of Slides To access a copy of the slides from today s presentation please go to: