Broker Dealer to Affiliate with for Mutual Fund Business Only

[VolAgent]

Sorry Dave, but as long as your B/D's name goes on the transaction, they are going to want their paperwork done. Almost everything you mentioned I recall being required when I gave up mine years ago, except maybe the FINRA fee analyzer.

To be frank, I don't even know that I would go RIA at this point. Unless you have a really strong selling point, even managed money's days are numbered. There are a number of robo-advisors available at very low cost. If all you are doing is asset allocation, then why are you really doing?

 

[DHK]

To be frank, I don't even know that I would go RIA at this point. Unless you have a really strong selling point, even managed money's days are numbered. There are a number of robo-advisors available at very low cost. If all you are doing is asset allocation, then why are you really doing?

I don't believe that managed money's days are numbered. However, if ALL you are doing is "asset allocation", then that business model is going to die.

But successfully bringing a higher level of thinking to retirement income planning and doing true wealth management... will be VERY lucrative. In short, I'd recommend learning how to "buy income and invest the difference" for qualified retirees, perform annual reviews, and do a "life change review" to ensure that their entire financial situation is in alignment with anything new.

You can't get a computer to do that, nor do so with any advice or wisdom.

http://www.insurance-forums.net/for...ating-financial-planning-aum-fees-t87666.html

http://www.fa-mag.com/news/advisors--melancholy-mood-33003.html

Murray ridiculed the notion that robo-advisors could replace real advisors. They may be able to allocate assets for young people with rollovers too small for most advisors and brokers.

But robots are not going to guide people successfully into retirement. A few weeks ago, a retired money manager I know who holds a CFA asked me if I knew a good CFP-CPA to help him structure retirement withdrawals. The point is, a sharp person with an Ivy League M.B.A. realized this task was out of his league.

http://www.fa-mag.com/news/nick-murray--wake-up-to-the-golden-age-of-financial-planning-32751.html

"Robo-advisor—I'm 50 years in the business, and this is the single stupidest idea I have ever heard," said Murray. "Robo-advisor is a contradiction in terms. Robo is a robot, advisor is a human, and never the twain shall meet. … if you are for more than 10 seconds worried about a robo-advisor, you have no value proposition. You don't know what it is that you do."

Importantly, robo-advisors and other technological solutions have no way to guide investor behavior or react to clients' emotions—qualities that make human advisors indispensible, Murray said.

 

[BeeSelective]

If you are trying to avoid compliance or desire a bd to ignore compliance, you are looking for problems. I don't like it either, but it is the way it is now.

 

[daveshea]

You can dump your FINRA Reg and go NASAA Series 65 IAR. Be fee only. Life is a lot better on this side of the table. The "Transaction-Based" business model is dead or dying. That's why even Merrill is in constant recruiting mode.

There are many national RIA's working with small guys who are very friendly to Insurance Producers. Some have mins, some don't you just have to look around. I can refer you to some if you want to go that route. I don't recruit so I get nothing out of it.

How does that work actually? I guess I don't entirely get it. I can sit for the Series 65 exam, and even without my Series 6 license, I can open accounts for people and conducts trades for them but instead of receiving commissions, I charge an annual fee? Do I affiliate with a particular firm to do this with? What if I keep my Series 6 and 63 and get a 65?

I just don't understand the mechanics of how the fee based stuff works - do I join a firm that allows me to open accounts for people, and then I make a contract and invoice the people for my fee annually?

I want to learn more about how this works - my entire career with investment firms was always commission based - years ago when I had a Series 7 and now my 6.

 

[Supreme]

Brand new to the forums, having registered after searching old posts for an answer to my question...

I am a fairly newly licensed rep. I worked in the business about 15 years ago, held a Series 7 and worked as a sales trainer with a large brokerage firm. Obviously that license lapsed a long time ago when I left the business.

I now have started a Medicare advisory business, but also want to sell securities to clients needing help with IRA rollovers, 529s, etc. I obtained a Series 6 and 63 and registered with a firm in California.

I am NOT happy with their compliance and paperwork requirements that I'm having to jump through just to get a mutual fund application approved and sent to a fund company. The straw that might break the camel's back is a large IRA rollover that is being held up in compliance now for a week over a typo on a form and the need to get all new documents from the client, etc. I'm dealing with 35 pages of firm required paperwork just to be able to submit the fund company application to American Funds!

In my opinion, the paperwork requirements aren't reasonable for accounts that will be held at the fund company only.

Right now, I'm small time, just building production, and I don't want to be burdened with a bunch of fees and want to just follow the rules and help my clients.

Can anyone steer me to a reputable firm that won't object to my small status right now, understand that I'm just wanting to do mutual fund stuff right now, and won't charge all kinds of fees...

Frustrated,
-David.

David, give me a call 910-769-6007.
Supreme Alliance LLC
Broker/Dealer, Member FINRA.
SEC Registered Investment Advisor.
Insurance FMO/IMO.
NO monthly fees
You pay only your Initial FINRA/State/Firm Fees to join us ($750), and you pay your Annual Renewal Fees (approximtely $400).
You write the mutual fund application, complete the BD New Account/Suitability Forms and any other required forms, Scan and Email to our Home Office for approval. Our Turn-around time is 24 hours or less.
When we reply "approved" you are to send the Original Mutual Fund app and Check, to the mutual fund company (same day, or next day).
We also (as an IMO) have more than 60 Top Carriers for you to write for.
And, if you are PC licensed, we have another 15 Carriers for PC, Business, Commercial coverage.
I think you would be a good fit for our team.
Give me a call.

 

[walthamny]

If you open up your own RIA or join one, you will get paid on either hourly basis or charge AUM fee. The trick is to find a custodian who will do it for you. Most have starting AUM minimums. If you don't have the AUM, you can have clients open accounts at Fidelity or Vanguard, have them give you limited power of attorney and do whatever you want. However, you would have to bill these clients manually. You can do annual or quarterly or monthly, ebilling is easy nowadays. You can still get commissions on insurance products. You will be your own Compliance officer so approval times will depend on your own turnaround.