Independence, Simplified
®
Spring | Summer 2014
2
Move your clients
FiNet helps every practice transition to independence by letting advisors focus on what’s most important — their clients
4
Serve your clients
FiNet products and services allow business owners to serve their clients efficiently and effectively — while running an independent practice
6
Grow your practice
Every FiNet practice has a team dedicated to its long-term growth and success, in the beginning and over time
If your desire is to be the best, then your goal should be to improve with each passing year. At Wells Fargo Advisors Financial Network (FiNet), we make a conscious effort to never settle for status quo. This is the reason FiNet is the choice for top financial advisors seeking independence.
As the independent brokerage channel of Wells Fargo & Company, FiNet provides access to the scope and stability of a major financial institution coupled with the freedom and flexibility of business ownership. In essence, you get “the best of both worlds” — top products and services, a comprehensive platform and the freedom to build your own client-service model, control of day-to-day operations, and the ability to design a legacy for your business, your family, and yourself.
Our organization’s history of success illustrates our relentless focus on continuous improvement, and top-tier FAs and clients are taking notice. As of March 1, we had 1,215 Financial Advisors, 589 practices, and $79 billion in client assets.
But the move to independence is not for everyone. It requires thoughtful planning, a desire to run and grow your business, and unwavering dedication to do what is right for your clients. With those principles in place, you can begin the transition to independence. Here at FiNet, you will partner with a transition consultant who will guide you in establishing your business, moving your client accounts, and retaining your clients via a tried-and-true process. Thereafter, you can opt to leverage the products and resources of Wells Fargo Advisors to strengthen client service and loyalty. And for the long haul, you will benefit from FiNet’s commitment to help you grow and build equity in your practice.
Don’t believe me? Then read on and see what current business owners have to say about their affiliation with FiNet. If their stories resonate with where you are and where you want to be, I invite you to further explore Wells Fargo Advisors Financial Network.
C. Kent Christian
The Wells Fargo Advisors
Financial Network Story
Wells Fargo Advisors Financial Network (FiNet) simplifies independence for successful Financial Advisors through partnerships in order to help create an extraordinary business, life and legacy.
As the independent brokerage channel of Wells Fargo & Company, FiNet provides an option for advisors who are looking for the best of both worlds: individual business ownership and access to the resources of one of the largest and most admired financial services firms in the country.
Advisors who choose to affiliate with FiNet have a variety of resources available to them, including transition support, business valuation services, access to industry research, technology and top products.
FiNet facts at a glance
Number of Financial Advisors 1,215
Number of practices 589
Total client assets under advisement $79 billion Advisors’ average length of industry service 19 years Home Office staff dedicated to Wells Fargo Advisors Financial Network business owners 80*
* These 80 are supported by nearly 4,000 Home Office and back office staff dedicated to serving the clients of Wells Fargo Advisors Financial Network, LLC as well as Wells Fargo Advisors, LLC and First Clearing, LLC. As of March 1, 2014 NJ PA OH MI WI MN ND SD ID WA OR MT WY NE KS UT NV CA CO NM AZ AK HI OK TX IA IN IL TN KY MA WV VA NC SC GA AL MS AR MO LA FL DE CT MA ME NH VT NY
FiNet practice locations
Move your clients
FiNet helps every practice transition to independence by
letting advisors focus on what’s most important – their clients
André Cantareira manages a team of experienced transition consultants, commonly referred to as practice liaisons, whose responsibilities include guiding advisors through a successful transition to independence, introducing them to the Wells Fargo Advisors Financial Network culture, and providing ongoing, relationship-based, Home Office advocacy and support. When an advisor makes the decision to move to FiNet, the transition process begins immediately to help ensure a successful replication of that practice’s book of business. André explains, “Our team accepts shared ownership of each practice’s transition process which ultimately leads up to, and includes, the transfer of their clients.”
Whether an advisor or practice is joining FiNet from a wire house, regional firm, or a different independent model, inherent in the transition is a wide range of details, tasks, and regulatory requirements — the most critical and
emotionally charged of which is the way the book of business is transitioned. André says, “We understand the significance of creating an early emotional connection with the advisor based on a mutual understanding and appreciation for what he or she is undertaking. We take time to fully understand the business owner’s book of business, and we anticipate needs and potential obstacles. Also, we ask questions — lots of them. Fewer surprises on the front end equates to fewer surprises on the back end.”
André and his transition team educate and coach advisors throughout the transition process by connecting them to the appropriate resources and information to help ensure success on Day One. This includes product, platform, operations, practice management, branding, supervision, and technology conversations. By the time the advisor’s registrations move to FiNet, he or she is fully prepared to focus solely on clients. André emphasizes another key factor that contributes to FiNet’s successful client transition formula. He says, “The average FiNet business owner has 19 years of industry service. FiNet is comprised of a very tenured, distinguished, and successful group of advisors, and we’ve seen time and time again that after all those years, their clients are truly their clients. The loyalty and relationships are firmly with the advisors.”
André continues, “We keep in close contact with each new practice. We want to know how things are going; if our business owners are happy, we are thrilled. If there are frustrations, we are there helping to put them to rest. In the background, we monitor replication rates compared to what experience has shown us to be healthy progress, so we maintain a proactive presence in the critical post-transition weeks.”
So why FiNet?
FiNet is a destination that provides freedom and flexibility in how advisors establish, market, and run their businesses. That flexibility, combined with the strength of the Wells Fargo brand and platform, creates an environment that allows advisors to serve their clients with a purposeful and intimate approach. In addition, each FiNet practice has the opportunity to create its own culture, serve their clients as they see fit, and determine what their legacy will look like.
“By the time the advisor’s registrations
move to FiNet, he or she is fully
prepared to focus solely on clients.”
Maureen McPeek and Ralph Lynch share the same profession, the same office, the same parents, and the same commitment to serving their clients, many of whom are multigenerational families themselves. Maureen, a 21-year financial services veteran, and her brother Ralph, in the industry for 31 years, followed their father’s footsteps into the financial services business. Ralph says, “Our father was a financial advisor too. When Maureen and I started our careers, we developed our own books. Dad didn’t want to hand us anything; he wanted us to work for what we have. We built our business through the years. Our dad joined us in 2004, and the three of us became equal partners until his retirement in 2007. Today, Maureen and I are equal partners.”
Maureen and Ralph built their practice within
predecessor firms of a large national wire house. Ralph says, “Though we weren’t necessarily looking to move, there was a constant barrage of opportunity that caused us to take a look around the independent space. FiNet’s presentation of independence resonated with us, both in terms of compensation and how we are able to make a mark on what we do for our clients. We love the distinction of having our own identity and brand. When someone asks our clients who they use for financial advice, they say Lynch McPeek, not the name of a big wire house.”
Maureen serves as the branch manager of Lynch McPeek’s six-person practice, where all the support associates followed her and Ralph from their previous firm. When they began exploring the option of independence in November 2012, Ralph says, “We learned about the Envision® planning process1
and what it could allow us to do for our clients. Maureen is excellent with planning, and we knew right away that this tool would be perfect for our practice.” Maureen adds, “FiNet’s
Envision presentation was a ‘wow moment’ for us. Our
goal is to have 90% of our clients on Envision plans by the end of 2014.”
Once Maureen and Ralph made the decision to join FiNet, they were matched with a transition team to help facilitate and guide the way, including coaching them on how to communicate the change to their clients. Maureen says, “Our FiNet team coached us on telling our story to our
clients and anticipating their reactions. Their advice was really helpful and spot on. The vast majority of our clients were excited for us and moved with us. So while we initially wondered if they would follow, many of them actually said, ‘You’re going to bring me with you, right?’”
Maureen and Ralph were also faced with the adjustment of becoming business owners for the first time. Ralph explains, “We’d never been business owners before. There was a huge learning curve to managing ourselves rather than being managed.” Maureen adds, “Our familial relationship helped with the adjustment in that we know we’re always there for each other and have a special commitment to our joint success.” Lynch McPeek will celebrate one year of independence with FiNet on May 17, 2014.
1 See page 9 for an overview of our Envision planning tool.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Lynch McPeek Wealth Management is a separate entity of WFAFN.
A suburban Chicago brother-sister team finds in FiNet the
tools and culture they always envisioned for their clients
Maureen McPeek, Executive Vice President, Director and Ralph Lynch, Executive Vice President, Director – Lynch McPeek Wealth Management
Serve your clients
FiNet products and services allow business owners to serve
their clients efficiently and effectively — while running an
independent practice
Rick Calhoun’s Innovation & Growth team is responsible for helping FiNet’s business owners serve their clients and grow their practices. The team oversees practice management, products and services, internal and external strategic partnerships, practice mergers and acquisitions, and management of FiNet’s pilot programs. It’s a wide umbrella of providing business owners with thought leadership, training, and execution.
“One of the key things about FiNet is our culture,” Rick says. “We believe in our business owners and continually invest in the resources and leadership they need to deliver an experi-ence that not only helps keep clients satisfied, but creates advocates.” FiNet’s business owners and advisors benefit from the strong and stable reputation and brand of Wells Fargo and all the resources it has to offer, yet they have the indepen-dence of entrepreneurs. Rick explains, “We don’t tell you how to run your practice. Instead, we give you the freedom and support to run it your way. When you affiliate with FiNet, you will discover unparalleled culture, commitment to excellence, dedication, support, opportunity, and reward.”
Rick’s team understands that every business owner’s priority is to serve his or her clients, and that’s why his team has developed strategic partnerships with firms such as FP Transitions, Myriad Advisor Solutions, and The Oeschli
Institute to provide business owners with specialized services that allow them to balance those needs with the needs of running a practice — practice valuation, succession and continuity planning, real estate and space sourcing, benefits, HR, office and payroll systems, and practice and team management/development.
Rick explains this real-life example: “A business owner in the Midwest had been considering his succession plan for several years, and it was constant topic of conversation in his “coaching calls.” Our director of Practice Management enlisted the help of the FP Transitions team to revise the business owner’s existing succession and continuity plan, and it was during that process that another FiNet practice in the same state contacted my team to inquire about potential practices for acquisition. While the initial business owner was not quite ready to sell, by working with FP Transitions we were able to bring the practices together and begin the process of implementing a new succession and continuity plan that now involves the first owner selling the majority of his practice to the second over the next five years, and then receiving income and benefits for the remainder of his and his spouse’s lives. This is a true example of a win-win for all involved — the business owners, their associates, and their respective clients.”
So why FiNet?
Rick says, “The thing that makes FiNet special is the
people. While yes, we are part of a very large firm, we all work very hard every day to make it seem small. We are actively engaged in how we can continue to maintain intimacy with our business owners as we and they continue to grow.”
“We don’t tell you how to run
your practice. Instead, we give
you the freedom and support
to run it your way.”
A Maryland practice’s tag-team approach to client service
is rooted in knowing their clients well
“Working with people and their money is serious business” says David Greenleigh. “But Brian and I know when to be serious and when it’s OK to lighten up.” That would explain the large and kooky canvas portraits that hang in The Luts & Greenleigh Group’s office in Bethesda, Maryland. The images only begin to expose the smart and witty personalities of David and his business partner, Brian Luts. “Clients — like anybody — appreciate that balance,” Brian says.
It was Brian’s mom who showed her son the ropes of working in financial services. The 16-year Financial Advisor recalls, “I was intrigued with the brokers in her office and their different styles.” Today, Brian and David, an economics major and another 16-year veteran Financial Advisor, work with retirees and have found a division of labor that plays to both of their strengths. Brian says, “David excels at the prospecting side of the business, while my role is more of an inside guy. We have a hand-in-hand, relay-type strategy that works for us and our clients. We both understand the importance of knowing our clients well so we can help them and their families succeed.” David says, “Our business is focused on retirees with an emphasis on working with retirees and pre-retirees from the large energy companies. Typically, a prospective client meets with me first. I take our prospective clients through a very detailed retirement planning process. This process not only helps me best understand what the prospective client’s retirement needs and wants are, but it also helps these folks think about their future. Once we get through this process, Brian takes the reins.”
Brian explains, “When a prospect becomes a client, we work to help him or her understand our fundamental belief in asset allocation. We also have a very clear approach to helping clients know what to expect from us in terms of service, support, and education.
Consistent, personalized client communication is a key element of The Luts & Greenleigh Group’s client service approach. David says, “Because of our constant interaction with our clients, we get to know them intimately, and our
relationships become so much more than the typical client/ advisor relationship.”
“We chose FiNet because it is the best combination of independence and wire house resources. More important than anything is that our clients are OUR clients,” Brian says. One thing is for sure, no matter the responsibilities of business ownership or rewards reaped, David and Brian aren’t going to stop enjoying themselves. Since affiliating with FINET in September of 2012, their three-person team has gone from managing $195 million in assets with $100 million in fee-based assets, to $300 million with $200 million in fee-based assets.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). The Luts & Greenleigh Group is a separate entity of WFAFN.
Brian Luts, Financial Advisor and David Greenleigh, Branch Manager – The Luts & Greenleigh Group
Grow your practice
Every FiNet practice has a team dedicated to its long-term
growth and success, in the beginning and over time
Alex David describes his role with FiNet as one that can be viewed through a couple of lenses. First, as head of Branch Development, Alex oversees FiNet’s talented team of regional directors and associate regional directors who help business owners and advisors assimilate to independence and who manage and maintain relationships over the growing and changing life cycle of their practices. Alex says, “My team spends most of its time in the field working with our Financial Advisors. Continued intimacy with our business owners is essential to their practices’ success. Post-transition and always, they need to know the Home Office still cares and are advocating for them at the highest levels of the firm.” Second is the marketing side. Alex says, “Marketing provides business owners insight to the innovations and industry trends occurring in the independent space. We’re out there in the field every day, taking the pulse of the business so we can help FAs visualize their practice from Day One.” Alex helps FiNet’s business owners grow and evolve their practices by making sure FiNet’s regional directors and associate regional directors are a top field force. He explains, “Our business owners at all times have people dedicated to their growth who help them identify opportunities to buy and merge with other practices, assist with FA recruitment, and grow their books, client by client.” He adds that his team has expertise in “matchmaking” practices seeking to merge
within and outside of FiNet.
“Our people know what’s going on in their marketplaces. They are the eyes and ears for our business owners. Our regional directors build deep relationships with practices. They know how they started and what they’ve achieved as well as what their long-term goals entail.”
Alex is passionate about why FiNet is the best choice for financial advisors who are exploring independence. He says, “We are consultants and advocates for business owners and focus on their immediate and long-term success.”
So why FiNet?
Alex says FiNet has expertise in anticipating the right paths to growth for each unique practice. It has the scale and scope of a wire house to provide capital to jumpstart an advisor’s business while offering him or her the advantages of business ownership. “With FiNet, you have the ability to have the scale and scope of a wire house but have the pride and entrepreneurialism of business ownership. Your growth potential is in your hands,” he says.
“Continued intimacy with our
business owners is essential
to their practices’ success.
Post-transition and always, they need to
know the Home Office still cares and are
advocating for them at the highest levels
of the firm.”
7
A Salt Lake City practice celebrates a growth trifecta
of client service opportunities, assets under management,
and quality of life
For WHF Wealth Management partners Chris Williams and Robb Farr, serving their clients in the independent model means having the freedom to offer objective advice in an unobstructed setting, while assuring their clients that their assets are held with one of the most recognized and stable companies in the industry. Robb says, “We always wanted to own our practice and embrace our client relationships without the distractions that became part of our daily routines at our former wire house. We feel good about having the Wells Fargo Advisors brand standing behind us. We’re able to focus our time on managing our client accounts and deepening relationships.”
Chris, a 14-year Financial Advisor who also holds his CFP® Professional designation, says WHF’s growth has mimicked FiNet’s. “Both our practice and FiNet have experienced tremendous growth since our relationship began. I think this is a direct result of the personal and caring attention that we provide to our clients and FiNet provides to us. This business is about relationships and FiNet gets that.” Robb adds,
“FiNet has been everything we had hoped for. Everything our FiNet team promised has happened. They’ve done a great job listening to what its business owners say, constantly asking for feedback and ways to make our lives easier. They let us know that our opinions matter, and we are treated as valuable assets to the firm.”
Chris and Robb cite their practice’s growth statistics since they joined FiNet: “We started with three partners and an assistant. We now have seven Financial Advisors and two assistants. More critically, our assets under management have gone from less than $100 million to $225 million.”
Chris says, “PIM® (Private Investment Management)2 has
helped our practice become more efficient. Some of us have participated in the DELTA3 practice management
pro-gram, and the Voluntary Growth Opportunity Award (FiNet’s optional bonus program that rewards advisors for following industry best practices) has allowed us to increase our mar-keting budget. Robb adds, “Our practice is growing thanks to Envision®; I use it as a basis for all conversations with clients. It is such a simple process, but so effective. I can’t say enough good things about this tool and its benefits to my clients.”
Chris and Robb advocate for FiNet and speak to practices who are considering moving to independence. Chris says, “I vividly remember when we were shopping around the independent options. It is a scary time and without honest input from other FiNet business owners, we would have had a harder time wrapping our head around how it all works.” In terms of their future aspirations, Chris and Robb say, “We would like to continue to grow our practice at a double-digit pace. We will do this by building upon our current model along with pursuing the purchase of other practices. We are known as one of the cutting-edge practices — always trying to push the envelope — and FiNet always has an open ear to our ideas for growth.”
2 See page 9 for an overview of our PIM program. 3 See page 9 for an overview of our DELTA program.
Investment products and services are offered through Wells Fargo Advisors Financial
Chris Williams, CFP®, Managing Partner and Robb Farr, Senior Vice President –
WHF Wealth Management
FA
Qs
Q How long does it take to open up my own office?
A FiNet will work closely with you to set a target date for your opening. During the transition period, we’ll work with you to develop a plan, finalize arrangements for your office space and furnishings, prepare signage, stationery and marketing materials, obtain and test your technology, complete all required registration documents, finalize your exit strategy, and prepare to transfer client accounts after your resignation. Depending upon the size of your practice, this time period may range from 30 to 90 days. Q In addition to the Series 7 and Series 63, what
securities registrations are required to open an independent office?
A An independent broker-dealer’s office is considered to be an Office of Supervisory Jurisdiction (OSJ), which requires daily supervision by an individual with a Series 9 and 10 or Series 24 license. In addition, you will need any registrations applicable to the type of business you or any of your registered representatives transact on behalf of their clients — for example, Series 31 for managed futures and Series 65/66 for investment advisory business.
Q How do I set up my business?
A There are several ways to establish your new business. You may want to create a sole proprietorship, a limited liability company, an “S” Corporation or a partnership. Our strategic system partners can guide you toward the right legal entity. You will decide on the location for your office, and determine your employees’ salaries and benefits. We recommend that you work closely with your accountant and FiNet’s strategic partners to determine the most favorable setup for your business. Q Do you offer any start-up capital?
A Start-up assistance is available through our various non-equity capitalization programs. Your regional director will give you details on these competitive, innovative loans and start-up financing options.
Q Am I taking on additional risk through business ownership?
A There is a misperception in the industry that going independent is risky. Although you will own your own business, WFAFN is still responsible for supervising your securities brokerage and advisory business. You will work closely with your regional supervisor to make sure your business is compliant with industry rules and regulations. In addition, you will participate in annual compliance audits. You will also be covered by an errors and omissions insurance policy.
Q How much time and paperwork will be involved in supervising my practice?
A It varies depending on the business mix of your practice. Significant resources have helped reduce the time required to provide proper supervision.
Q Can I add more Financial Advisors to my practice?
A Yes, with WFAFN approval.
Q How will I access client accounts, get information and place orders?
A All account transactions and maintenance are executed through the Wells Fargo Advisors SmartStationSM
desktop solution.
Q How do I get paid and how do I pay for business overhead expenses?
A FiNet distributes 1099 income to Licensees and any registered Financial Advisors. All employee and overhead expenses are administered by the Licensee through his or her choice of business entity.
Q How do you compare with other independent firms?
A We leverage the size and scale of one of the nation’s largest financial services firms. Our platform is designed for professional, successful advisors who want to own their own practices without giving up the products, services, resources and support that both they and their clients are used to receiving. Our minimum for affiliation consideration is $300,000 in production.
Q What name will be on my business cards, stationery, and signage?
A This choice is yours. You decide whether to leverage the Wells Fargo Advisors Financial Network name and brand, create your own brand, or a combination of the two.
1 Wells Fargo Advisors’ Envision planning tool helps Financial Advisors get to know clients’ specific needs and goals in
order to create tailored investment plans.
Unlike other planning processes you may have seen, an Envision investment plan can help you help clients uncover
goals, determine which are the most (and least) important and track their progress toward achieving them. It also has the flexibility to account for any possible changes they may face ahead.
Envision® is a registered service mark of Wells Fargo & Company and used under license.
2 The Private Investment Management (PIM®) program is a discretionary program in which the Financial Advisor is the
portfolio manager. The PIM program is offered to Financial Advisors with prior portfolio management experience and
allows them to manage portfolios based on their own personal investment styles. The PIM program is not designed for excessively traded or inactive accounts and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors Financial Network advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
3 DELTA is a one-on-one coaching program based on proven business development, practice management and marketing
strategies. DELTA, named for the concept of change, will help increase the quality of your personal and professional life. You will learn to implement proven strategies to build a professional business model that is focused on serving and replicating your best relationships in a predictable, repeatable and sustainable fashion.
Wells Fargo recognizes and values the diversity of its employees, customers and business partners. Wells Fargo & Company is an Affirmative Action and Equal Employment Opportunity Employer M/F/D/V. Wells Fargo Advisors is the trade
For more information about becoming
an independent Financial Advisor with
FiNet contact us: 1-866-485-5383 or
visit
wfafinet.com.
Meet our Regional Directors
Charles Cornett, Southeast
Kent Whitaker, Northeast
Ryan Thompson, Northwest
Jason McLaughlin, Great Lakes
