Jones increasing ACAT/termination fee to $95
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Hey EDJ guys, does the Green Machine ever cover incoming ACAT fees for a client moving over to Jones? I had a client move to a state in which I'm not registered, and she would be the only client I have in that state, so I decided to urge her to seek someone locally. All the RJ guys she talked with were goons, so I encouraged her to look up some of the Jones guys locally and she found one she liked. The ACATs get processed, RJ hits her for outgoing fees on several accounts (4-5 I think) and she assumed that Jones would reimburse her for it, because that's what RJ did when we moved from AGE originally.
Word from her Jones guy is that he "can't do that because it would be 'buying accounts' and Jones doesn't believe in that." All together, it's about a $250,000+- relationship.
Does this guy have the leeway to handle this internally, or is it a company-wide policy to never reimburse ACAT fees?
[quote]Does this guy have the leeway to handle this internally[/quote]
... he'd better not let anyone know about it, if he does. I'd be friggin' furious.So, does that mean that you guys universally don’t have the leeway to reimburse any ACAT fees?
I know for a fact that an FA can accept the charges for a Jones fee. The procedures to do it are outlined on our system. However, it does not indicate anything about outside fees. That would have to be addressed with someone in the home office.
I know that it gets a bit hairy if there is a fee charged by another firm that comes over as a negative cash debit in an IRA account. Since it is not a fee charged by the current firm, the fee cannot be reimbursed, even by the client, into their IRA. Funds to cover it would either need to go in as contributions or securities liquidated within the account to cover it.So then ... "Sorry Mr. Client, I can't compensate you for the ACAT fees MSDW charged. But at least I can do this ... I can help you with the IRA fees here, which will help offset those costs." Hadn't thought of it that way. Intriguing.I know for a fact that an FA can accept the charges for a Jones fee. …
I told the lady to demand a lifetime suppy of the little 2 Chiclet gum boxes you guys give out. She’s going for it. She may even push the envelope and ask for one of the Edward & Jones halter tops that all of you guys make your BOAs wear on Fridays. I hear it’s crazy up in there at the end of the week!
The FA can choose to cover the charges. Maybe they’re just too high for some noob FA to cover. Kraft Mac n’ Cheese just went up!
I'm still waiting to see a BOA that could fit into a halter top! Is there a rule against hiring decent looking chicks to man the phones?I told the lady to demand a lifetime suppy of the little 2 Chiclet gum boxes you guys give out. She’s going for it. She may even push the envelope and ask for one of the Edward & Jones halter tops that all of you guys make your BOAs wear on Fridays. I hear it’s crazy up in there at the end of the week!
Jones FA's can cover the transfer fee's. I've done it plenty of times. You just have to go through compliance and you get to not pay a bill at home. But hey, it's worth it if its a big account.
Here is the deal on ACATS. I think it is okay for Jones to raise their termination fee to the industry standard but in so doing they should provide the industry standard in service. To my knowledge they are one of the few firms that does not electronically transmit the cost basis with a ACAT transfer. Every other transfer I have had from other firms does…very cheesy not to. I consider that part of a client’s expectation of service.
If the prior firm has the cost basis, we receive it with the transfer. I'm looking at a recent transfer now, to make sure. I think the main problem is that most of the time, the prio firm before transfering to Jones, doesn't have a cost basis. or are you saying it doesn't get transfered out to other firms, when transferring FROM Jones?Here is the deal on ACATS. I think it is okay for Jones to raise their termination fee to the industry standard but in so doing they should provide the industry standard in service. To my knowledge they are one of the few firms that does not electronically transmit the cost basis with a ACAT transfer. Every other transfer I have had from other firms does…very cheesy not to. I consider that part of a client’s expectation of service.
Another thought on the termination fee…My current firm charges for an IRA after they have had the IRA for a year…EDJ charges upfront for that custodial fee.
What is the industry practice??If the prior firm has the cost basis, we receive it with the transfer. I'm looking at a recent transfer now, to make sure. I think the main problem is that most of the time, the prio firm before transfering to Jones, doesn't have a cost basis. or are you saying it doesn't get transfered out to other firms, when transferring FROM Jones?[/quote] That's exactly what I am saying!![quote=noggin]Here is the deal on ACATS. I think it is okay for Jones to raise their termination fee to the industry standard but in so doing they should provide the industry standard in service. To my knowledge they are one of the few firms that does not electronically transmit the cost basis with a ACAT transfer. Every other transfer I have had from other firms does…very cheesy not to. I consider that part of a client’s expectation of service.
you can choose to do whatever you want. This is considered buying business. Field Supervision will not allow for it, and it cannot be allowed as a gift either. Sorry, that's what I've been told.The FA can choose to cover the charges. Maybe they’re just too high for some noob FA to cover. Kraft Mac n’ Cheese just went up!
you can choose to do whatever you want. This is considered buying business. Field Supervision will not allow for it, and it cannot be allowed as a gift either. Sorry, that's what I've been told. [/quote] Lock, Thats not true at all. I have paid for a clients transfer fees many times. You have to call your Field Supervisor and they initiate the re-imbursement, as well as taking the fees out of your paycheck. I've done this without a doubt more than I can count on my hands. They allow it everyday, they just won't pay for it. Noggin - Ahh. I did not know that we do not transfer out cost basis to other firms. That doesn't make much sense.[quote=UNDERMINDED]The FA can choose to cover the charges. Maybe they’re just too high for some noob FA to cover. Kraft Mac n’ Cheese just went up!
MJ- Sing them your song "Leave Me Alone"
http://www.youtube.com/watch?v=h5KAJw4y8wEJones does a lot of things that make little sense. The cost basis is just one of many. My take on the fee increase is more about revenue generation than being in line with the industry. If you have a large number of accts moving out, might as well ding the client one more time. I don’t like the practice at all, but when you open an acct, you agree to the fee by signing the forms.
or how about. “All i wanna say is that, they don’t really care about us” or “Dirty Diana, nawwww”
That's the strange thing. There aren't a large number of accounts moving out. It's either that or other places are losing a ton more than we are.Jones does a lot of things that make little sense. The cost basis is just one of many. My take on the fee increase is more about revenue generation than being in line with the industry. If you have a large number of accts moving out, might as well ding the client one more time. I don’t like the practice at all, but when you open an acct, you agree to the fee by signing the forms.
I hope with the increase they can manage to start doing the right thing and transfer the cost basis info. It makes no business sense not to - in my experience, the clients who I ACAT out of Jones vow never to go back because they get pissed about the cost basis not moving. For a firm that claims to be the most moral firm known to humankind it’s funny how they not only treat leaving reps poorly they also feel the need to punish clients for leaving.