Articles Written by Jon Henschen

Gauging Broker-Dealer Service: How You Can, Why You Should

by Jonathan Henschen, CFS and featured in advisorbiz.com
July, 2010:

It’s no secret: one of the main reasons reps leave firms is lousy back-room service.

Sure, all broker dealers claim to offer terrific service, but the toughest thing for reps to gauge when selecting a firm is the quality of that service, and the various factors that can influence that quality, or lack of it.

If you’ve already been burned by a broker dealer’s approach to service you know what I mean, and should want to avoid reliving it. If you’re new to all this, trust me: you’ll want to avoid the experience. Either way, stick around, you’ll all profit from what you’re about to read.

I might as well begin by explaining that from my 20 years in this business,

How to Avoid Compliance Policies That Cater To the Lowest Denominator

by Jonathan Henschen, CFS and featured in AdvisorBiz
May, 2010:

The past two years have been unlike anything I’ve seen since entering the financial services industry. Regulations have become increasingly labor-intensive, while broker-dealers are on the defensive; doing everything they can to shield themselves from the potential liability of their own advisors.

Regulations in our industry are seldom black and white. Plenty of room has been left, for example, for broker-dealers to decide how advisors are supervised, or how marketing materials are approved, or the complexity of business paperwork.

The ideal scenario is when advisors are with firms that do what financial services regulators require, but not much more. Problems arise, however, when broker-dealers experience certain triggers that end up making their advisors’

Making the Most of Home Office Visits

by Jonathan Henschen, CFS and featured in Broker/Dealer Journal
October, 2008:

When financial advisors consider changing broker/dealers, they’ll often visit prospective firms to see who’s the best fit and most interested in them, and which ones can be crossed off their list. That makes planning and managing Home Office visits for advisor prospects a very big deal for a firm’s recruiting effort.

The same goes for advisors. Before booking flights all over the country, for instance, advisors should find out what production requirements broker/dealers require to cover the costs of these excursions, which can mount up in a hurry. Expense reimbursement requirements for airfare, ground transportation and hotels vary, but $150,000 in GDC (Gross Dealer Concessions) is a common figure industry-wide. This is not to discourage advisors to forget firms wanting more than that;