I think they they see it very much like a General views a battlefield.  He's got an objective to take, a career to build, and the force of thousands of people in green uniforms at his command.  He knows that in taking that objective he's going to lose some grunts.  Actually, a lot of them.  He's going to lose a few higher ranking officers from time to time too, but if at the end of the day, he's taken his objective, the campaign and his command of the campaign will be considered a success.  Here's another star (or Ferrari).  Job well done. 

The problem is that the objectives are changing.  We've trained for the invasion of Omaha Beach, but we've been dropped into Iraq.  The tactics have to change.  There will be some casualties at all levels.  But we'll eventually get the right kind of training to start taking objectives again. 

Generals can't afford to be compassionate, BTW.  It makes them seem cold hearted and ruthless, but it's out of necessity that they have to make decisions for the good of the whole even if it means morale temporarily drops and people start going AWOL. 

[quote=B24]

[quote=Advisor238]

If we were pushed into a 100% fee based world, (don't think that will happen) it would have a big effect on the EDJ business model. It would also have a big effect on all of the broker dealer's business models. I think in a fee only world, that we would see the organic growth model at Jones killed or at the very least curtailed. If those new FA's are not generating commissions, it would take a long time for the fees collected to pay for their training, new offices, etc....    I do think we will have an interesting 24 months ahead of us, and I for one would be happy to see some changes in the Jones model, such as focusing more on the FA's in the field and less emphasis on growing the number of FA's. More emphasis on the quality rather than the quantity of FA's. We are seeing that now to some extent with the higher production standards. I also think at some point we could see a consolidation of Jones offices to lower our expenses and make us more profitable.

[/quote]

For compliance reasons, you will not see office consolidation.  The only way we get away with no onsite OSJ is due to the one-man setup.  As much as   woudl like to see it, it ain't gonna happen.  However, there is a greater emphasis on Goodknight and Legacy setups, so they may consider extending the time period one spends with another broker, which would get the new broker closer to profitable before building a new office.

[/quote]

We already have mutli FA offices in some metro areas across the country.

Spiff - I couldn't agree more with your assessment. I think at this time I wish that I wasn't a grunt !!!

[quote=B24]For compliance reasons, you will not see office consolidation.  The only way we get away with no onsite OSJ is due to the one-man setup.  As much as   woudl like to see it, it ain't gonna happen.  However, there is a greater emphasis on Goodknight and Legacy setups, so they may consider extending the time period one spends with another broker, which would get the new broker closer to profitable before building a new office.[/quote]

Ameriprise does not have an onsite OSJ. The OSJ is in constant contact with all the offices in his/her region but our OSJ lives two hours away and comes to the office once a quarter. We have six licensed and three non licensed individuals. The OSJ has nothing to do with it.

[quote=Advisor238]

[quote=B24]

[quote=Advisor238]

If we were pushed into a 100% fee based world, (don't think that will happen) it would have a big effect on the EDJ business model. It would also have a big effect on all of the broker dealer's business models. I think in a fee only world, that we would see the organic growth model at Jones killed or at the very least curtailed. If those new FA's are not generating commissions, it would take a long time for the fees collected to pay for their training, new offices, etc....    I do think we will have an interesting 24 months ahead of us, and I for one would be happy to see some changes in the Jones model, such as focusing more on the FA's in the field and less emphasis on growing the number of FA's. More emphasis on the quality rather than the quantity of FA's. We are seeing that now to some extent with the higher production standards. I also think at some point we could see a consolidation of Jones offices to lower our expenses and make us more profitable.

[/quote]

For compliance reasons, you will not see office consolidation.  The only way we get away with no onsite OSJ is due to the one-man setup.  As much as   woudl like to see it, it ain't gonna happen.  However, there is a greater emphasis on Goodknight and Legacy setups, so they may consider extending the time period one spends with another broker, which would get the new broker closer to profitable before building a new office.

[/quote]

We already have mutli FA offices in some metro areas across the country.

[/quote]

It's a significant minority, and most are older arrangements or exceptions.  By general rule , they are not setting up multi-FA offices .  We actually have a few in our area as well.  As of 2009, we had 12,600 FA's, and 11,100 offices.  If you exclude the FA's located at the home office, doing Goodknights, doing Legacy's, and working out of their homes, you see that there are VERY few permanent mult-FA offices.  I would estimate the number to be about 100-200 company-wide.

I'm not saying I agree with it, just that it's their general policy.

[quote=N.D.]

[quote=B24]For compliance reasons, you will not see office consolidation.  The only way we get away with no onsite OSJ is due to the one-man setup.  As much as   woudl like to see it, it ain't gonna happen.  However, there is a greater emphasis on Goodknight and Legacy setups, so they may consider extending the time period one spends with another broker, which would get the new broker closer to profitable before building a new office.[/quote]

Ameriprise does not have an onsite OSJ. The OSJ is in constant contact with all the offices in his/her region but our OSJ lives two hours away and comes to the office once a quarter. We have six licensed and three non licensed individuals. The OSJ has nothing to do with it.

[/quote]

I don't know Ameriprise's arrangement with FINRA.  I only know Jones'.