Wrong To Go Outside Of Brokerage Platform?

[StrictlyIndependent]

Hi,

I'm new in the business and switching from one firm to another for a much better deal and atmosphere. I do some joint work with an agent at my current firm.

My new firm has my old firm on their brokerage platform but I want to go direct to my old firm for a broker contract. Would this be look at unfavorably by my new GA? Only thing I could think of is the GA loses it's cut. ???????????

 

[insuranceexec]

That "cut" is what they use to pay the bills.

Talk to the new firm about it and see what they say.

 

[StrictlyIndependent]

That "cut" is what they use to pay the bills.

Talk to the new firm about it and see what they say.

Even if I meet my agent contract requirements they still get pissy about this?

 

[VolAgent]

Even if I meet my agent contract requirements they still get pissy about this?

Why not ask them?

But how would you feel if the shoe was on the other foot? You just hired a new salesperson. He is making his quota, even exceeding his quota. But he also spends time each week selling someone else's product.

 

[StrictlyIndependent]

Why not ask them?

But how would you feel if the shoe was on the other foot? You just hired a new salesperson. He is making his quota, even exceeding his quota. But he also spends time each week selling someone else's product.

I am going to ask.

My feeling is I sell proprietary products to meet my contract and make the company money. The GA deserves an override to help with office expenses and staff to facilitate this proprietary business.

But why go through the brokerage platform and give them an override when I'm doing all the work on my own for outside business? I understand paying for service but there is no service to me if I handle everything on my own.

 

[VolAgent]

I am going to ask.

My feeling is I sell proprietary products to meet my contract and make the company money. The GA deserves an override to help with office expenses and staff to facilitate this proprietary business.

But why go through the brokerage platform and give them an override when I'm doing all the work on my own for outside business? I understand paying for service but there is no service to me if I handle everything on my own.

But the time you spent selling non-proprietary products could have been spent selling proprietary products. Yes, I understand your arguement, I am just giving you the other side.

Here is a more important question, are you securities licensed, and who is your B/D?

If your GA is your B/D, or the controlling carrier is your B/D, then you're going to find it very hard to go outside without them knowing about it.

 

[StrictlyIndependent]

But the time you spent selling non-proprietary products could have been spent selling proprietary products. Yes, I understand your arguement, I am just giving you the other side.

Here is a more important question, are you securities licensed, and who is your B/D?

If your GA is your B/D, or the controlling carrier is your B/D, then you're going to find it very hard to go outside without them knowing about it.

I will be upfront with my intentions. This all just sounds like a half-a** attempt to say an agency isn't captive. My BD is PAS and I am securities licensed.

 

[VolAgent]

I will be upfront with my intentions. This all just sounds like a half-a** attempt to say an agency isn't captive. My BD is PAS and I am securities licensed.

Welcome to the world of career systems and securities. You are now required to disclose all OBAs to your B/D. If you don't disclose, or your B/D doesn't allow it, then you're selling away and violating FINRA regulations.

Are you a new, financed agent? Generally they are stricter on newer agents. Of course, each GA is different. Your GA might be completely fine with it if you're experienced, or the GA could be fine with it regardless.

In your GA's mind, he has bought a franchise from Guardian, and is entitled to all the rights and benefits. Think of it this way, if you owned a Burger King franchise, would you want people eating their Big Mac there? Even if they bought your fries?

 

[StrictlyIndependent]

I guess I'll just go through the brokerage platform for now to save any hassles. Can my friend at the old firm put me on half the case when I'm at my new firm?

Do you know if insurance firms will allow me to continue selling insurance if an investment friend of mine and I start up an independent branch of a investment firm(osj)?

 

[VolAgent]

I can't speak for your GA, but I don't see a problem with you and your friend splitting non-securities insurance business as long as you both have a producer number.

As to your second question, I'd say you'd be on a broker contract versus a career contract in such a situation. Since Guardian allows brokers, I'm sure it would work.

Remember, your B/D is the problem. If your B/D is a subsidiary of an insurer and you are on a career contract, you can be sure you'll be strongly encouraged to focus on proprietary business. At minimum, they'll want you to run as much business as you can through the captive brokerage arrangement.