It looks like the economy may be getting better. I just received what I call a “Boiler Room” call. This is where an unlicensed guy calls up looking for prospects for the licensed rep that he works under. Once he hits his sales number he will be allowed to take the exam and then get minions under him.
I was surprised by the question “do you currently work with a financial advisor(s)?” This is a more astute an approach than I have had in the past. When I stated that yes I do have some relationships, I was asked if I was committed to a single advisor/firm. One I answered no, he preserved on.
There is really no way that some faceless drone from New Jersey is going to get client recommendations from me. That is not how I work. I need to meet the people to whom I may at some future date refer a client to. I refuse to shoehorn or have my clients shoehorned into a product that does not meet their needs based upon their goals. Whereas, the faceless drone is compensated more heavily by shoehorning the clients into products that pay them more.
In the past I have been the backroom in preparing financial plans for financial advisors as well as being a compliance officer. I had been a licensed rep with my Series 7, 24, 53 and 66 as well as my life and health. But I was never an active seller. But, in my ever going chase for knowledge I sat in seminars for CPE that made me shutter. There were and probably still are products that have no benefit to a client and only benefit to the representative (seller) and the company selling the product.
I have been witness to practices that I would never sign my name to. Working for a large company, I kicked these application up to the my superiors along with my concerns. They signed off on them with no difficulties, but then they were going to get a percentage of the proceeds. I just wanted to keep my ethics and stay out of trouble.
This is not true to all financial advisors. The ones I work with and recommend client to have to be honest and committed to supplying their client with what they need and not what will make the advisor more money.
So I passed on the opportunity to send client referrals to New Jersey. Not because they are from New Jersey, but because I do not know them so I do not trust them. Especially with something as valuable as one of my clients.