Performing Due Diligence
When deciding to hire a new financial advisor, the branch manager should perform his or her own extensive screening to ensure that the prospective financial advisor will be a successful fit within the branch office. Once the branch manager has selected a candidate to hire, the following are a few guidelines recommended for an efficient and successful hiring process.
Listed below are some important topics you may wish to ask about during the initial interview:
- History and background
- Current practice size
- Relationship with clients
- Product use
- Compliance issues
- Reasons he/she wants to change
- Significant issues (see below)
- Gross production vs. net production (break-even analysis)
Some information you may wish to share with potential hire:
- Overview of your broker dealer
- Overview of your branch office
- Payout schedule
- Benefits of joining your branch office and B/D
Raymond James branch managers should have a prospective financial advisor complete and sign the background consent form (form 1797) and fax or mail it to the home office. This form allows you to pull a credit report and run a CRD report.
Raymond James branch managers should work with their respective Regional Management Regional Director and Assistiant Regional Director to discuss hiring any new financial advisors.