Chase FA/JP Morgan

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sectorrotate's picture
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Joined: 2009-11-30

For family reasons I am moving my family to be closer to my parents. <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
 
I got a call from a Chase Investment Manager after applying for a position. 
 
Our phone call was brief, but he asked that I fly out to meet him and discuss the position.
 
I have a few questions I was hoping could be answered here:
 
1)  What is the platform?  JPMorgan Funds, SMA's?
 
2)  The investment manager said it is 100% commission, which is obvious.  However, I was wondering if there is a honeymoon small salary to start up?  Anyone know?  Having done this before, it would be hard to re-locate and start a book without a beginning salary that declines.
 
3)  my biggest question:  how is new business developed?  he mentioned working with chase clientele and not cold calling.  He did say you can cold call if you want to, but no one really does.  what is the flow of new traffic like?  Ive never worked in a bank, just wirehouse and one independent.

aeromaks's picture
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Joined: 2007-01-13

Is this working in the Chase bank branch, or at the JP Morgan offices?

sectorrotate's picture
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the manager indicated to me it was covering 1-2 branches, and mentioned its working with JPmorgan.
 
the position description is Chase FAA

sgd5405's picture
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Joined: 2009-04-27

First off all the chase guys say JPmorgan because it makes it sound better than Chase, but it is a retail position. They do have access to just about any product you want, including sma's and reits, uits, and a manged platform with some pretty good institutional options.   But there is a small push to use JPmorgan funds.  And of course the approved list of fund families (pretty long list though)The bankers that will refer business to you can only sell FAs and JPmorgan funds you still get commission for those though which can help if the bankers are good.  The opportunity relies heavily on what kind of branches you will cover, and what quality of bankers you would have. I have seen guys do extremely well 50K gross monthly, and some fail 2000 gross monthly.   There also should be some kind of book in place already but be careful there, I heard after I left to go indy, they hired a guy and decided to give him the top 20% of each of the 4 branches in my area then hire newbies to handle the individual branches with no books left.   So they started from scratch, 2 have already left I think.  Payout is tiered I think minimum, to not get on the bad side, used to be 15k gross monthly and that was 22% payout or something like that. There was a small forgiveable draw that was included as well 2000 a month i think.      Also be prepared to be micromanged to death from some guy who probably couldn't cut it at producing plus the branch manager that probably just got hired from some store in the mall!  Good luck, it really is a good place to START a book.

aeromaks's picture
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Joined: 2007-01-13

what sgd said.  I interviewed for that position, but stoped pursuing it.
2 of my friends are currently there. one that covers 3 branches in NJ, and one that shares a branch in CT.Payouts start at 30% and fall from there. you are on salary first 6 months if not mistaken, can be 3., dont recall.  after that, it is a draw.You have to get clients, bring in assets.  What hits the grid is also controlled.Look, in the end, you are sacrificing pay/grid for being able to coast by on your butt if you have good banker referrals.

Ron 14's picture
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Joined: 2008-07-10

sgd5405 wrote:
First off all the chase guys say JPmorgan because it makes it sound better than Chase, but it is a retail position. They do have access to just about any product you want, including sma's and reits, uits, and a manged platform with some pretty good institutional options.   But there is a small push to use JPmorgan funds.  And of course the approved list of fund families (pretty long list though)The bankers that will refer business to you can only sell FAs and JPmorgan funds you still get commission for those though which can help if the bankers are good.  The opportunity relies heavily on what kind of branches you will cover, and what quality of bankers you would have. I have seen guys do extremely well 50K gross monthly, and some fail 2000 gross monthly.   There also should be some kind of book in place already but be careful there, I heard after I left to go indy, they hired a guy and decided to give him the top 20% of each of the 4 branches in my area then hire newbies to handle the individual branches with no books left.   So they started from scratch, 2 have already left I think.  Payout is tiered I think minimum, to not get on the bad side, used to be 15k gross monthly and that was 22% payout or something like that. There was a small forgiveable draw that was included as well 2000 a month i think.      Also be prepared to be micromanged to death from some guy who probably couldn't cut it at producing plus the branch manager that probably just got hired from some store in the mall!  Good luck, it really is a good place to START a book.
 
Absolutely right on the money. You must ask at the interview for 2 main things. What are the teller transactions and what are the branch deposits ? When you find those numbers PM me and I will be glad to give you my opinion. You do not have to sell JPmorgan funds, but like mentioned above, there is a small push, which is understandable. Im currently there.

sectorrotate's picture
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Joined: 2009-11-30

Can you explain more about teller transactions?  I have never worked in a bank as mentioned.
 
I think I understand about branch deposits.  There is probably an ideal number there and one can base a penetration percentage on how good the prospecting might be from the branch clients?
 
Thanks.

Ron 14's picture
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Joined: 2008-07-10

Teller transactions just monitor the activity of people walking through the door/drive. If you get a 30mil book this number doesn't really matter, but if you are getting new branches that have just opened you need to know if the traffic is worth FA coverage. I have been saddled with a couple terd branches that I had to "produce" my way out of.

SBmss's picture
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Joined: 2006-11-17

The post's above are pretty accurate but, to clarify a bit further:FAA's get a higher salary for 6 months then move down to the $2K forgivable draw permanently.  All FAs operate with that forgivable draw.  FAA's also currently get an enhanced grid for 18 months, with the lowest payout being 30% and increasing to 35%.   After 18 months the grid adjusts to a range of ~20%-35%.  The statement above is correct in that you are giving up a lot in the way of payout for the leads to essentially come to you.I would add that, like any position you interview for, what you're told and what comes to pass may be two different things.  I was told I'd inherit a book with 2-5MM fee based; the actual numbers were half of the low end numbers.  I expected to get the low end numbers, but for that to be cut in half was disappointing; moreso b/c I was lied to, rather than the actual numbers.  But, that's giant corporate America for you.On the other hand, I've gotten in front of multiple multi-million dollar accounts in less than 18 months at Chase and will bring in $8-10MM for 2009, depending on how December goes....so with the rat race comes opportunity that the Chase brand offers.One last thing...the bankers can sell 4 different fund families, not just JPM, so if you want to be entirely impartial you do not have to sell JPM at all. 

aeromaks's picture
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Joined: 2007-01-13

SBmss, my friend was told the same thing. was told about an 8m book, of which it turned into 2mil, very little if any fee based.  as soon as the old fa left, other fa's split the book.
 
 

Ron 14's picture
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aeromaks wrote:SBmss, my friend was told the same thing. was told about an 8m book, of which it turned into 2mil, very little if any fee based.  as soon as the old fa left, other fa's split the book.
 
 
 
No doubt. When a guy leaves the vultures circle like crazy trying to request rep code changes for his accounts. It is unreal.

Wet_Blanket's picture
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aeromaks's picture
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Wet_Blanket wrote:http://www.southparkstudios.com/clips/222624that was halarious blanket. Thanks for making my day. =)

DCnew's picture
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Joined: 2007-11-28

Absolutley hilarious!
I even had to pass than one on to the wife!

Ron 14's picture
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That was awesome.

Wet_Blanket's picture
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The whole episode is pretty funny, but that was a highlight.

C_FA's picture
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Joined: 2008-12-07

I'm over at the Octagon as well, for the past year.  Came from a wire that is still around. I'm kind of frustrated there, but hear me out.  Some of the upsides have already been discussed.  I think this should be qualified with where the branch is located, socioeconomically, and traffic patterns.  Don't be taken by the hiring manager saying, oh, there's 200 million in deposits here.  Every branch is different.  I know of several examples where you could, for example, have high deposits, and low traffic and/or money that doesn't move easily (for example, client trust accounts, etc); or, high traffic but low deposits and low incomes.  I'm not trying to discourage you, but be aware.  I understand a lot of the former Wamu branches are crap.  Many took advantage of the 5% cds in 2008, now coming due, taking their money and running.  In talking with a lot of my coworkers, the best branches for an FA seem to be those with the following characteristics: not necessarily HNW or UHNW (a lot of them are in the industry and can't or won't invest with you), but more blue and white collar types-middle to maybe upper management, a step or two below C-level execs.  These people typically will listen to you, take your recommendations, have the assets that over time, you can hit the numbers and can create a good book of business.  Products are tilted towards packaged product, as has been said.  They really cut the balls off us in terms of payout with restrictions on individual securities-stocks have to be unsolicited, even bonds and preferreds, depends on the rating; we can't place insurance other than annuity products and SPL (we have to refer it up to a "senior" rep and I don't think we get paid on it), and can't do managed futures.  I think we can do covered calls.You don't get paid on mortgage referrals, and banking relationships (for ex, say, your client owns a business with 10MM in deposits and this business is brought over).The JPM funds are pretty good overall.  There are some good managed accounts, and the financial planning software is okay, but limited in scope.  See my comments below.  401Ks and related are kind of limited-just a few providers (JPM, natch, and Oppy).  We have some new issue bonds, through CISC-nowhere near what a MSSB, MER, UBS, etc can offer.  You can use the Muni Center to find bonds if you need 'em, but you have to call Chicago to buy them.I think the technology is crap-a lot of the Windows apps still have references to Bank One (this was 6 years ago!!).  NFS is the custodian, not JPMorgan Securities.  As such, statements are a little primitive.  We use an NFS interface "Streetscape" and a PNC interface "Advisorport" for managed accounts.  I feel it could be designed a lot smoother and more professional, if we are to compete with the other full service b/ds.Support services can be hit and miss-it's based in Chicago at the old Bank One HQ or San Antonio.  Find a good support svcs rep and stick with them.  Compliance is overbearing, total CYA thing, but I can see where it helps out.  It's an extra signature a lot of times, grin and bear it.  Bankers can be a mixed bag.  Some are really aggressive, others can be not necessarily familiar with investments but be comfortable in a sales format, and willing to introduce you at least.  You need at least one banker of these two types in every branch.  My suggestion would be to talk to the bankers if you can-the interview will usually involve the branch manager at some point.  Look around before you go--scope it out at different times, if possible, like a Saturday morning or a weekday as folks are going home from work.  I don't have a lot of experience with teller referrals.  Branch Managers can be good or not.  A good one can help you out immensely--I have one of these.  You report to an IM, many of which are in their 20s.  Micromanaging is an understatement.  Chase has some "Private Client" group that works to poach the higher deposit accounts.  This is different from the JPM side, although they brand themselves with a hybrid of the two.  They operate out of select branches and mine the same territory as you.  The other thing is, if, say, your client goes to a different branch, they shouldn't, but can, get hounded by the Chase FA or banker in that branch.  Be aware of this.  Revenue target is 20M/month.  It's hard, but doable in many cases. 

Gman7979's picture
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Joined: 2010-02-13

Just turned down offer from JPMChase. Said they are recruiting a ton of FA's to fill the void that the Wamu branches had with their FA's not being able to cover all the branches, and they just sold fixed and variable annuities anyway.

Was going to take over a book of 15M with branch deposits of 120M. The plus was the everyone in the branch refers to you an they get paid for doing so. You also have access to every branch customer and their deposit balances, you can even look at every debit card and credit card charge with every account they have just in case you were wondering how much the wife spends at victoria's secret each month.

Downside was payout is 30% guaranteed for 1st 18 months, then if you hit certain goals, it can go up or down. Guarantee of 3K/mo for 1st 6 months, then your states local min wage. You really need to gross a ton to make any serious money here, and it really depends on your branch and the staff around you.

I am in a wirehouse and am doing just fine getting my own clients and realized this is not the route for me. Could be a good position for some, especially those that are new to the biz and prospecting on their own isn't going too well.

Hope this helps.

Ron 14's picture
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Joined: 2008-07-10

GMAN that was a pretty good deal in terms of assets and branch deposits, but if you are doing fine on your own, without the leads from the branch, you made the right decision. Good luck moving forward and welcome.

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