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Q: |
What sort of payout does PICI offer? |
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A: |
This is a negotiable matter and depends
on many things other than merely ones production level.
For example, the anticipated level of Home Office support
that might be needed. We do note, however, that our
average payout is significantly higher than that of our
competitors. |
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Q: |
Will PICI allow me to operate my own
RIA? |
| A: |
Yes if we consider you qualified.
There is a small monthly fee for our monitoring of this
business. |
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Q: |
Will PICI permit me to
operate my own insurance agency? |
| A: |
Most probably. There is a small monthly fee for our
monitoring of this business. |
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Q: |
Does PICI have E&O
insurance and am I required to pay for it? |
| A: |
The firm has substantial E&O coverage
that covers all firm associates. The cost of this
coverage is included in our monthly admin fee.
Consideration for maintaining a large groups own coverage
would be considered in limited circumstances.
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Q: |
If I become an
independent broker, should I form a professional
corporation? |
| A: |
The answer is almost certainly yes.
We have found that most accountants and attorneys do not
give adequate guidance in this matter and we are able to
offer suggestions for your consideration. |
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Q: |
Can my present firm
hold up my registration for any reason? |
| A: |
No, not under any circumstances.
If you have a contract, they may pursue relief in
arbitration to recover any money advanced or lent to you or
to recoup training costs but they may not prevent you from
transferring your registration to PICI. |
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Q: |
I have heard rumors
that my current firm may seek a court injunction preventing
me from calling or contacting my clients if I leave.
Is this true? |
| A: |
While this has happened in the past,
in accordance with current securities industry regulations,
any such court order is virtually worthless.
Furthermore, any firm which in any way attempts to prevent a
customer from doing business with whomever or wherever they
wish, will almost certainly have a regulatory problem.
Please see the "transitioning" section of this site for
more. In our opinion, only real exception to this is
the unfortunate soul who makes their home at Edward Jones. |
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Q: |
If I have or obtain my
Series 24 license, I can run my own operation, correct? |
| A: |
No, this is not so. A S24
license is a general principal's registration. It is
the firm's decision if your office would be designated as an
OSJ (Office of Supervisory Jurisdiction) or not. Even
if you are a designated OSJ, you are still directly
supervised by the Home Office. |
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Q: |
Will I be allowed to
hire additional brokers for my office and obtain an
"override" on their production? |
| A: |
Yes, but only if you are an OSJ
Manager. At no time is any rep authorized to offer
anyone a contract. The firm must interview and approve
any and all new brokers. As an OSJ manager, you
receive an override percentage for all brokers you directly
supervise based upon the individuals gross production (net
of clearing costs). If you are not an OSJ manager, you
can receive compensation for bringing another broker on
board through our referral program. |
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Q: |
Can I sell my book of
business? |
| A: |
Yes, but is a complicated matter.
There are many ways these deals may be structured and most
require various disclosures, approval of all firms involved
and of course, contractual amendments. If it is your
intent to retire in the foreseeable future, please let us
know so that we can assist you in your planning.
Buying a book of business without the knowledge, consent and
approval of the firm's involved is enough to get one barred
from the business these days. |
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Q: |
I have heard that a
firm may pay my spouse if I die, is that true? |
| A: |
This is true, however, contractual
agreements must be in place prior to your death and there
are limits. For example, assuming the proper contracts
are in place, we can pay your spouse on existing business at
the time of your death (at a reduced percentage) for as long
as the business remains on our books. If the client
moves the account, we have no control over that.
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Q: |
Are there any
restrictions on where I may locate my office? |
| A: |
Practically none. We do require
that all clients records are secure at all times and the
firm must have access to the location for audit purposes and
in the event of a fatality. |
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| Q: |
Does PICI permit discounting and
if so, will my payout be reduced in some circumstances? |
| A: |
Yes, discounting is permitted and no, we do not invade
payouts for discounted trades. |
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| Q: |
PICI is a small firm, how will I
have access to fixed income products? |
| A: |
SWS has an excellent fixed income desk which utilizes
the system "BondPRO". In many cases, we are offered
better prices than many much larger firms receive. In
addition to this, we allow experienced fixed income brokers
to buy and sell fixed income products "on the street"
therefore obtaining the best price possible. |
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| Q: |
Does PICI provide financial
planning software? |
| A: |
No, the firm does not, however our associates are
permitted to use, in addition to the SWS system, software
systems of their choosing but the program must be approved
by us prior to any use. |
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| Q: |
Is it possible for me to view the
firm's compliance manual and other firm related material
prior to my making a decision to join? |
| A: |
Yes, but only once you are seriously considering joining
our firm and you have signed our release document. |
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| Q: |
Is there a requirement that my
office be audited? |
| A: |
Regulation requires that all branch offices have on-site
audits performed based upon the branch activity. OSJ
offices are required to be audited annually, non-OSJ offices
are either on a three year or five year cycle. Most
are three year cycle offices. An audit fee is assessed
based upon location and activity. |
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| Q: |
Does PICI have a minimum account
size? |
| A: |
While the firm discourages opening accounts of less than
$10,000, in most circumstances there are no penalties
concerning any small accounts. SWS however, does
access a fee for any account that is inactive (value under
$25,000 and no trade activity for 12 months). |
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| Q: |
May I conduct outside business
activities? |
| A: |
Yes, but such activities must be approved (in writing)
by the firm in advance of any business activity. |
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| Q: |
Does PICI have any intention of
selling or merging? |
| A: |
No |
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| Q: |
What do I tell my clients when
they ask why I am moving to a small firm that is not well
known? |
| A: |
What you tell them is you are setting up your business
with a firm that offers a greater opportunity for lower
costs and more investment opportunities for them. If
they are concerned about the safety of their assets, you can
explain to them that their securities assets are held by an
NYSE member firm (SWS) which offers the same protection (no
more-no less) that they would receive at any of the major
firms. While Merrill, Lehman, Wachovia, etc have all
failed, PICI has survived the environment that killed those
firms. |
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| Q: |
How do I deal with the charges my
clients will be accessed for transferring their accounts? |
| A: |
Offer discounted commission and fees until such charges
are more than paid for. |
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| Q: |
How does PICI view the "landscape"
for brokers and investment firms in the coming years? |
| A: |
We are glad you asked. We feel there will be
significantly more consolidations and some failures over the
course of the next several years as the global economy
continues to contract and deleveraging progresses.
Additionally, we feel that the number of investment
professionals will shrink by around 40% from whatever levels
existed in mid 2009. Basically, brokers who do not add
"real value" to their client relationships will probably not
survive. Unfortunately, many brokers, indeed most
firms, have no idea how to do that. This situation
presents tremendous opportunities for those who are in
situations and circumstances which will allow them to take
advantage of it in the building of their business. |
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| Q: |
Is there anything else PICI can
tell me? |
| A: |
Sure - give us a call! 218-681-7344 |
