Adding financial services

[1manshow]

Curious if anyone would be willing to share the process with me regarding contracting with building a financial services practice along side of my Insurance agency? Anyone who's seen this process happen or has knowledge of starting a financial services practice from ground zero. My guy is a young professional with plenty of potential and connections in the community so the leads,etc aren't a concern. It's the licensing, broker dealer, designations, etc that I need to work through.

 

[DHK]

Depends on what and how you want to offer it.

If you want to offer securities on a commission basis, you'd need to get registered with a broker/dealer and get the appropriate licenses - Series 6 or 7, and series 63.

If you want to offer asset management services on a fee-basis, you'd need a Series 65 and either create or get registered with an RIA firm.

If you want to do both, you'll want to start by finding the broker/dealer. They'll have an RIA to do your fee-based business with.

Just be aware that broker/dealers need to know about all your Outside Business Activities - including selling insurance. They may even require you to put that business through their commission grids.

 

[1manshow]

Thank you....not a chance of running seven figures of commission through their grids on my dime. So....form a new corp and start from scratch? That'd be my plan if the broker dealer is firm on scalping my insurance commissions

 

[DHK]

If you want the greatest control, I'd stick only to the RIA business model - whether you start your own, or become registered through someone else's.

It's the broker/dealer model (and compliance) that is over-burdensome.

 

[1manshow]

Thank you, very helpful

Now I need a tutorial on RIA start up

 

[DHK]

RIA Compliance Software and Services - RIA in a Box

Or you can join other "insurance-friendly" RIAs and be an IAR for those RIAs. These are two that I have checked out in the past.
POM - POM
First Advisors National

Btw, if you have a team of agents, then First Advisors National has an override compensation system for anyone you bring in 'under you'.

 

[1manshow]

Thank you !

 

[DHK]

To start a financial services practice alongside your insurance agency, focus on:

1. Licensing: Get the required financial and insurance licenses.
2. Broker-Dealer: Choose whether to join an existing broker-dealer or start your own.
3. Designations: Consider certifications like CFP or CFA.
4. Compliance: Follow all regulatory requirements.

Your connections and potential are strong assets. Consulting industry experts can also help guide you through the process.

Are you a bot? Your post adds nothing to the thread and are common sense, other than recommending CFP and CFA to people who have no experience and they each have a 3-year experience requirement.

You added this garbage to my quoted post:
For additional resources or guidance, you might consider reaching out to contact GoFundMe for insights or support.

GoFundMe has absolutely NOTHING to RIA compliance requirements.

I'm reporting your post as spam.