Edward Jones. Opportunity or no?

[pfg1]

Right, EJ is your employer and you only do EJ. I asked alot of questions to corporate when I looked into it. Even though they have typical BD compliance, they also have their own rules - which is fine, its their business.

The good thing...they provide tremendous training, but you will be required to work alot of hours and door knock alot, and have strict goals and requirements. The EJ reps that can make it through the massive interview process to actually get hired, and can then make it through the first few years will likely make alot of $. I have 2 friends that are pushing 15yrs with them. They make a pile.

 

[Golfnut2112]

I would venture to say they would require you to run all your business thru them, I still don’t think they would care if you bought real estate or coached little league baseball. I have never heard of not being able to take your book of business unless you work at a bank. There is no doubt in my mind if you leave Edward Jones you can take your clients, it happens all the time with big brokerage houses. The securites business is quite different than the insurance business in that regard.

 

[Golfnut2112]

So it sounds like from what you are saying they may not have an issue with the insurance business?

Most independent BD,s don’t EJ I’m not sure

 

[DHK]

There is no doubt in my mind if you leave Edward Jones you can take your clients, it happens all the time with big brokerage houses.

Leaving a brokerage firm takes strategic timing. You're not allowed to have client files as that constitutes "trade secrets". There is definitely a non-solicit agreement for employee financial advisor positions. Mine for the credit union was 2 years.

Most reps turn in their notice on a Friday of a 3-day weekend, so they have time before it's "officially processed" and they can begin contacting their top clients over the weekend about the transition. Typically, the remaining clients are distributed to other trainees or other advisors to contact to retain the assets for the complex.

Also, if you leave Edward Jones within the first 3 years AND you go to another brokerage, reportedly, you would owe $75,000 for their training expenses. If you quit and leave the industry - no problem. If you're terminated for lack of production - no problem.

However, since the DOL ruling, they have changed their compensation arrangements and are focusing more on their fee-based portfolios... so I'm sure there are some changes.

And yes, we do hear about LARGE teams that transition firms. I personally think that it's a way for their clients to learn where they are so they will follow them and have positive press about them online.

 

[DHK]

This is a good link to learn more about the securities brokerage industry.

On Wall Street Homepage | On Wall Street

 

[Tahoe Ray]

There is no doubt in my mind if you leave Edward Jones you can take your clients, it happens all the time with big brokerage houses. The securites business is quite different than the insurance business in that regard.

To your point, I know several reps that started w/ EJ and are now with LPL, Securities America, etc. and they definitely took their clients.

Leaving a brokerage firm takes strategic timing. You're not allowed to have client files as that constitutes "trade secrets". There is definitely a non-solicit agreement for employee financial advisor positions. Mine for the credit union was 2 years.

Most reps turn in their notice on a Friday of a 3-day weekend, so they have time before it's "officially processed" and they can begin contacting their top clients over the weekend about the transition. Typically, the remaining clients are distributed to other trainees or other advisors to contact to retain the assets for the complex.

You can take some info with you but a lot of what you said holds true...Kitces has a good write-up on it:

Broker Protocol Compliance Requirements When Changing Firms

 

[Golfnut2112]

This is a good link to learn more about the securities brokerage industry.

On Wall Street Homepage | On Wall Street

That was really interesting a great deal for someone that may be retiring. You are right about the training expense if you leave within a certain amount of time you will most definitely have to pay it back.

 

[NCAgent828]

Man this is great stuff. I really feel like I will not make a switch. I think I have too much going for me and it would be too soon to try to do something like this. I really appreciate all of the info and it means a lot that you’ve spent as much time as you have explaining the process of all of this that you are aware of. If anything it has inspired me to go harder at what I’m already doing. Really excited for this year and implementing some new strategies.

 

[DHK]

If anything, if you're really looking to add investments to your total offering, I'd look at getting a Series 65 and either creating or joining an RIA firm.

Although I'm not familiar with anyone who has successfully done commercial insurance with investment management. There's got to be someone out there, I would imagine.

 

[pfg1]

I would venture to say they would require you to run all your business thru them, I still don’t think they would care if you bought real estate or coached little league baseball. I have never heard of not being able to take your book of business unless you work at a bank. There is no doubt in my mind if you leave Edward Jones you can take your clients, it happens all the time with big brokerage houses. The securites business is quite different than the insurance business in that regard.

Yeah, they don't have issues with the real estate or coaching...just no financial or insurance business outside of them. They told me if I wanted to work with (for) them...I couldn't even keep the contracts I had in place just to continue to get trail commissions.
Yes, if you leave - your clients can certainly follow you...but while working for them you don't own the book.