MSSB and Chase

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ChrisVarick's picture
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It seems that MSSB and Chase bank are on a hiring spree. What once were very selected firms for the financial advisor position has pretty much welcomed everyone with arms wide open.
I see a lot of my recent college graduate buddies scooping up jobs at MSSB these days. Did they lower their production? recruitment standards? eliminate the base pay? or what is going on here...I surely must be missing something.

Ron 14's picture
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I can't tell you anything about MSSB, but I know Chase is hiring because the WaMu merger has left many branches, especially on the West Coast, with little or no FA coverage.

ChrisVarick's picture
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Thanks Ron! On the website, it says it's hiring "Financial Advisor Associate" position...but the job desciption makes it sound like it's an ACTUAL FA position. Can you clarify?

MBA2FA's picture
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ChrisVarick wrote:Thanks Ron! On the website, it says it's hiring "Financial Advisor Associate" position...but the job desciption makes it sound like it's an ACTUAL FA position. Can you clarify?FAA is the job title given to new hires w/o a license.  The FAA program stretches through the first 60 months of employment.  After that time (or if you produce over $400,000 in a year), you graduate to the FA payout grid.FAA's are eligible for certain bonuses FA's can't receive.

franklin21's picture
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Joined: 2009-08-23

MSSB is the new town slut. They pretty much hire anyone these days. It's pretty hysterical. They were once two of the most coveted firms. AHHH what a fall from grace. BAHAHAHA. 

Squash1's picture
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Joined: 2008-11-19

Everyone is the new slut in town...There isn't a firm on the street that isn't hiring. Their revenues are down because of the transition to feebased and the market collapse last year. And the wires keep doing there two-step were they jump firm to firm to recruit people..

ChrisVarick's picture
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MBA2FA wrote: ChrisVarick wrote:Thanks Ron! On the website, it says it's hiring "Financial Advisor Associate" position...but the job desciption makes it sound like it's an ACTUAL FA position. Can you clarify?FAA is the job title given to new hires w/o a license.  The FAA program stretches through the first 60 months of employment.  After that time (or if you produce over $400,000 in a year), you graduate to the FA payout grid.FAA's are eligible for certain bonuses FA's can't receive.
 
It's interesting because on the website it says in order to apply for the FAA position, you are required to have a Series 7 and 63. First 60 months? How is the pay?

Squash1's picture
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iceco1d wrote: Not to change the subject, but I've heard things like "revenue is down because of the transition to fee-based" etc., a lot lately.
Correctly me if I'm wrong, but I would think that while fee-based guys are hurting, income-wise, transactional guys are (or were, last year) on the border of extinction?
 
I mean, last year, it wasn't strikingly simple to get people to move money. 
 
My OSJ actually told me that [fee-based] saved him this year.  I have no point of reference, because I'm basically all asset-based fees.  Just looking for a POV.

I was referring to the good old fashion stock and bond traders. There was a lot of volatility last year(lots of trades) for those type of guys to increase there production, while all a fee-based guy can do is hope to bring in enough assets to cover the decreasing fee rev.

Have two friends at jones, similar producers $400-500K, except one does all C shares,advisory and MAP.. While the other does individual bonds, stocks and some funds. The second guy(stock and bonds) increased his gross last year, while the "fee-based" guy fell because there was nothing he could do to generate revenue on fall fee accounts.

There is a reason guys like bondguy and others who have a transactional based business are still cranking out production..

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

MBA2FA wrote: ChrisVarick wrote:Thanks Ron! On the website, it says it's hiring "Financial Advisor Associate" position...but the job desciption makes it sound like it's an ACTUAL FA position. Can you clarify?FAA is the job title given to new hires w/o a license.  The FAA program stretches through the first 60 months of employment.  After that time (or if you produce over $400,000 in a year), you graduate to the FA payout grid.FAA's are eligible for certain bonuses FA's can't receive.
 
Couldn't be more incorrect. FAA is the term for any advisor who has been at the firm for less than 18 months. The first 18 months you get a small salary and a better grid. After 18 months you become FA no matter what your production is. Chase won't hire an outside candidate who isn't licensed. There is never a bonus at any stage. Production percentage only.

tqspygame's picture
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Joined: 2009-01-24

Does chase care if you have a book or not?

Ron 14's picture
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Squash1 wrote: iceco1d wrote:
Not to change the subject, but I've heard things like "revenue is down because of the transition to fee-based" etc., a lot lately.
Correctly me if I'm wrong, but I would think that while fee-based guys are hurting, income-wise, transactional guys are (or were, last year) on the border of extinction?
 
I mean, last year, it wasn't strikingly simple to get people to move money. 
 
My OSJ actually told me that [fee-based] saved him this year.  I have no point of reference, because I'm basically all asset-based fees.  Just looking for a POV. I was referring to the good old fashion stock and bond traders. There was a lot of volatility last year(lots of trades) for those type of guys to increase there production, while all a fee-based guy can do is hope to bring in enough assets to cover the decreasing fee rev. Have two friends at jones, similar producers $400-500K, except one does all C shares,advisory and MAP.. While the other does individual bonds, stocks and some funds. The second guy(stock and bonds) increased his gross last year, while the "fee-based" guy fell because there was nothing he could do to generate revenue on fall fee accounts. There is a reason guys like bondguy and others who have a transactional based business are still cranking out production..
 
Yeah the transaction guy at Jones increased production because he sold people out of their funds/stocks and bought individual bonds because the client was scared. The fee based guy did the right thing by telling people to hold on.

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

Chase doesn't care if you have a book or not. If you bring assets over great, but they won't give you any benefits or help by doing so.

chief123's picture
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Joined: 2008-10-28

Hey ron, is the built in client base(prospects) really worth it to switch over?

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

For me it was. I am not a big glad hander or networking / seminar type of guy. I was doing cold calling and door knocking and it was a slow road. (I posted my numbers for my first 2 years under another topic) People are in the bank because they need to address a financial situation and it is much easier to start a conversation then by jumping out of the bushes. It moves the sales process along much quicker, but for that you only get a 30/35% payout.

Gaddock's picture
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Joined: 2007-02-23

Ron 14 wrote:Chase doesn't care if you have a book or not. If you bring assets over great, but they won't give you any benefits or help by doing so.
 
Is that because everything you guys bring is an annuity with 15 years of surrender charges and or comes with a possible lawsuit ???  

Gaddock's picture
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Ron 14 wrote:
For me it was. I am not a big glad hander or networking / seminar type of guy. I was doing cold calling and door knocking and it was a slow road. (I posted my numbers for my first 2 years under another topic) People are in the bank because they need to address a financial situation and it is much easier to start a conversation then by jumping out of the bushes. It moves the sales process along much quicker, but for that you only get a 30/35% payout.
 
All kidding aide. Is it even possible to bring your clients with you if you go indy? Don't you have a contract with teeth? Do you think the bank thinks they are your clients or theirs?

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

Ask Omar. He is doing it right now without a problem. Its like any other firm, if the clients switch "on their own accord" they really can't come after you.

Ron 14's picture
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Gaddock wrote:Ron 14 wrote:Chase doesn't care if you have a book or not. If you bring assets over great, but they won't give you any benefits or help by doing so.
 
Is that because everything you guys bring is an annuity with 15 years of surrender charges and or comes with a possible lawsuit ???  
 
He asked about bringing assets into the bank, not leaving the bank.

Ron 15's picture
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Joined: 2009-08-26

Ron 14 wrote:Gaddock wrote:Ron 14 wrote:Chase doesn't care if you have a book or not. If you bring assets over great, but they won't give you any benefits or help by doing so.
 
Is that because everything you guys bring is an annuity with 15 years of surrender charges and or comes with a possible lawsuit ???  
 
He asked about bringing assets into the bank, not leaving the bank.
 
yeah!

SBmss's picture
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Ron 14 wrote:MBA2FA wrote: ChrisVarick wrote:Thanks Ron! On the website, it says it's hiring "Financial Advisor Associate" position...but the job desciption makes it sound like it's an ACTUAL FA position. Can you clarify?FAA is the job title given to new hires w/o a license.  The FAA program stretches through the first 60 months of employment.  After that time (or if you produce over $400,000 in a year), you graduate to the FA payout grid.FAA's are eligible for certain bonuses FA's can't receive.
 
Couldn't be more incorrect. FAA is the term for any advisor who has been at the firm for less than 18 months. The first 18 months you get a small salary and a better grid. After 18 months you become FA no matter what your production is. Chase won't hire an outside candidate who isn't licensed. There is never a bonus at any stage. Production percentage only. Ron hit the nail on the head in regards to Chase.The other 'FAA' program is what's in place at MSSB.The confusion is b/c both are using the same terminology to describe their new hire's.Not incidentally, Chase changed their new hire program & terminology after hiring an exec from SB to head up Chase's Investment Services.

C_FA's picture
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Joined: 2008-12-07

I left SB to go to Chase.  You can bring assets over, I brought about 5MM or so.  Basically, the better relationships and those not taking distributions.  Totally different world, though.  Technology is night and day, and we clear through NFS, for better or worse.   Lots of paperwork, somewhat arcane, and armies of compliance people-gets to be a pain in the ass, but, all things considered, it beats the alternative.  There are pluses and minuses to both situations, but again, in this market, who knows which way the wires are going next?  No, I didn't sell out or fail out.  I hit my 18 month goals on time.  We at SB were LIED to by Citigroup last fall, with all the bulls**t marketing collateral about strength of Citi, being well capitalized, etc.  I found out much later on how close we were to going down.  MS did scare me a little bit, even though my production was good, I was mindful of their reputation just to call a production number and everyone on the wrong side of the line's out.  PM me with any questions.

ChrisVarick's picture
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Joined: 2008-09-04

What are the production goals at a bank?

SBmss's picture
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Joined: 2006-11-17

I can't speak for all programs, but at Chase it's $20K/Mo.

ChrisVarick's picture
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Joined: 2008-09-04

I apologize for a rookie question, but how does $20k equate to in terms of accounts opened/products sold?
 
I came from an insurance background. For example if I rollover 100k into an advisory based account, that would be about $1600k inside a 1.6% fee based account? Or if I rollover the account into a variable annuity, that would be $7000k?

bluewire's picture
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Joined: 2009-07-04

Chase is going to only pay u 4% on ur fixed and variable annuities for all clients under 75. 3% to age 80. 2% 81-84 1% over 85.
Managed accts are usually going to pay u 1.5% annualized.
A/C shares typical 3-4% and 1%.

Payouts range from 22-35%.

Corporate bull$hit all day everyday. The Super Saturdays blow hard.
Compliance is hellish. It'll wear u out quickly

Omar's picture
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Joined: 2009-03-19

Ron 14 wrote: Ask Omar. He is doing it right now without a problem. Its like any other firm, if the clients switch "on their own accord" they really can't come after you.

When you leave, you "announce" where you have gone. If you have great relationships with your clients, they will contact you.

Remember, clients are free to move their money with whoever they want to manage their assets, even though big banks think they own them.

ChrisVarick's picture
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bluewire wrote:Chase is going to only pay u 4% on ur fixed and variable annuities for all clients under 75. 3% to age 80. 2% 81-84 1% over 85. Managed accts are usually going to pay u 1.5% annualized. A/C shares typical 3-4% and 1%. Payouts range from 22-35%. Corporate bull$hit all day everyday. The Super Saturdays blow hard. Compliance is hellish. It'll wear u out quickly
 
So do I need the 4% payout for annuities and the 1.5% for managed accts? Or does that filter thru the 22-35% grid? Also when they say your goal is 20k/month, is that gross production? or after the filter?

SBmss's picture
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Joined: 2006-11-17

$20K is gross production.Example of all the above; ie, you sell:$100K annuity -- pays 4% to grid = $4000 production$100K A shares MF -- pays 4% to grid = $4000 production$200K C shares MF -- pays 1% to grid = $2000 prodThat month you have $10,000 in production.That # is applied to a grid of payouts, ranging from 22-35%, depending on what range your production falls in.  In order to get the 35%, you have to do $40K+ that month (on avg).  @ the $10K # from the example, you'd get the lowest grid rate...

NCRR's picture
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Joined: 2009-07-11

Does anyone know what JP-Chase pays their advisers?

Ron 14's picture
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NCRR wrote:Does anyone know what JP-Chase pays their advisers?
 
Read the thread you stroke !

Ron 14's picture
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bluewire wrote:Chase is going to only pay u 4% on ur fixed and variable annuities for all clients under 75. 3% to age 80. 2% 81-84 1% over 85. Managed accts are usually going to pay u 1.5% annualized. A/C shares typical 3-4% and 1%. Payouts range from 22-35%. Corporate bull$hit all day everyday. The Super Saturdays blow hard. Compliance is hellish. It'll wear u out quickly
 
Couldn't agree more !!!! If you let the corporate BS wear you down, like I sometimes do, you will be miserable. The managers are complete robots who lack any original thought. You can't even have an open discussion with them.
 

NCRR's picture
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Joined: 2009-07-11

Well, I did read the payout numbers, and I think my question was not precise enough- in addition to the commission structure, does anyone know, what if any, salary is paid to JP-Chase advisers?

My understanding is the payouts are lower but the banks pay a base salary as well.

Thank you

SBmss's picture
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bluewire's picture
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It's been said before but never more true than for a bank rep. If you're worried about base salary then this biz is not for you. The "salary" is barely existent. Even as an FAA. You might be able to finagle an extra grand of salary/month but you start so low in the "negotiation" that it's not gonna make a difference.

workinhard's picture
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Joined: 2009-08-21

I'd argue that...
 
Not saying that base salary is everything.  But I just got hired at MSSB and made sure I was getting the same exact pay as I'm making in my current job.  It had nothing to do with worrying about success, and everything to do with the fact that I am closing on my first house next week.  So I don't think the salary thing is bad for newer reps.
 
Take Care

bluewire's picture
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Joined: 2009-07-04

Ideally you'll get a nice salary to start but everything I've heard and seen is that the salary to start is so menial that you're going to want to hit the ground running and produce otherwise you're starving.
but yes - a decent ramp up salary would be preferred.

workinhard's picture
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Joined: 2009-08-21

I come from a very strong corporate retirement plan background and someone in this branch office just left that was one of their retirement specialists.  I was in a very good position to negotiate a salary for 30 months that was EXACTLY the same as I am making currently.
 
But I do agree that typically salary is minimal.  That is one of the reasons that I went with MSSB, among others over other firms.

ricky32478's picture
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Joined: 2010-09-30

quick question, is there any deffered comp at chase?

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