Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Regulation and Compliance > Federal Regulation

Love Among the Ruins: B/D Reps Add to the Conversation

Your article was successfully shared with the contacts you provided.

In the June issue of Investment Advisor, Jonathan Henschen wrote a tongue-in-cheek prescription for “How to Ruin a Good Broker/Dealer” based on his experiences of dealing with “frustrated financial advisors” who Henschen has consulted with in his recruiting activities for reps and B/Ds themselves (read article here). For example, one of Henschen’s 12 tips addressed compliance issues: “Let your compliance folks run wild creating reams of paperwork to protect the firm. Clients feel more secure when handed stacks of disclosure forms to sign.”

The story certainly resonated among our broker/dealer rep readers, and a number have added their own tips, following the lead of one who wrote: “This was one of the best pieces I have ever read on Investment I may be somewhat subjective, as my B/D has managed to do every single bullet point referenced in this article. Imagine that–and all this time they have been telling me I’m crazy!”

Here are some of the comments:

“Have your compliance department adopt a “get the RP” attitude. Meaning, focus not on whether the RP supervises appropriately but whether or not he has all the volumes of disclosures, forms, blotters, etc. created by the “compliance department run wild” filed in the appropriately labeled and colored folder. And by all means write the RP up if something that he’s never been told he was required to do isn’t done.”

“Let the legal department design applications so that by the time a client finishes signing and initialing they feel like they’re buying a house. Also, never use one form for a single transaction when you could use four.”

“Move your back office operation and service helpline to India or Bangladesh or the Philippines so that the advisors and clients can’t understand the person on the other end of the line.”

To add to this discussion, just send an e-mail with your tips to [email protected].


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.