Training Presentation. RIA Brokerage - Insurance

Transcription

1 Training Presentation RIA Brokerage - Insurance

2 Agenda for Asset Management (RIA) Checklists HKFS Forms & Website HKFS Client Reports Schwab Forms & Website SEI Forms and Website Transfers Other Maintenance Forms Compliance Files

3 HKFS Affiliate Office Locations North Dakota Minnesota Wisconsin Wyoming South Dakota Nebraska Iowa Illinois Kansas Missouri

4 Honkamp Krueger Financial Services Partnering with CPA firms since 1995 Over 70 CPA affiliate firms throughout the Midwest More than 100 Investment Advisor Representatives Licensed Insurance Agency in 19 States Over $3 billion of in-force life insurance coverage Utilizing 40 of the world s s finest insurance companies Complete menu of financial services Among the top 2% of Private Asset Managers in the U.S. Over $225 million held in non-managed brokerage accounts Multiple custodial platforms to maintain independent asset management options Proprietary training and support tools and systems Complete back-office support by experienced investment and insurance staff to assist in financial services implementation and reporting Local Financial Advisor support

5 Honkamp Krueger Financial Services Asset Management Customized Portfolio Management Separately Managed Accounts Stocks Bonds Mutual Funds Cash Management Structured Products Retirement Planning Qualified Retirement Plans Individual Retirement Accounts Risk Management Life Personal Planning Executive Benefit Planning Business Continuation Advanced Estate Planning Long-Term Care Disability Group Life, Health, Disability & Long-term care Brokerage Services* Uni-401(k)s Traditional and Roth IRAs Mutual Funds 529s Individual Securities *Securities offered through ProEquities, Inc, a Registered Broker r Dealer and Member NASD and SIPC. Honkamp Krueger Financial Services, Inc. is independent of ProEquities, Inc.

6 The HKFS Management Team Ann McCorkindale Chief Investment Officer CFA, CFP Jim Herrig Vice President & Counsel Juris Doctorate John Darrah Chief Operating Officer Chief Compliance Officer CFP Roy Lines Vice President New Business Development CFP Arnie Honkamp Managing Partner HK & Co. Founder of HKFS CPA Louie Rosalez Chief Marketing Officer CEPP

7 HKFS Financial Advisors Brian Cose Sales Manager CLU, CFP, AEP Dubuque, IA Jim Siemonsma Senior Financial Advisor Omaha, NE Rick Hageman Senior Financial Advisor CFA, CFP Green Bay, WI / Chicago, IL Russ Pixler Senior Financial Advisor Sioux Falls, SD Mike Gasperi Senior Financial Advisor Des Moines, IA Pete Moeschler Senior Financial Advisor Minneapolis, MN

8 HKFS Financial Advisors Quint Hogrefe Senior Financial Advisor St. Louis, MO Cara Miller Senior Financial Advisor Rapid City, SD Jan LaBonne Financial Advisor / Brokerage Compliance Specialist LUTCF Dubuque, IA John Morrow Financial Advisor /Service Manager Omaha, NE

9 HKFS Insurance Advisors & New Business Development Laurie Paulsen Financial Advisor Director of LTC/ Disability Insurance Dubuque, IA Bob Anderson New Business Development Representative Dubuque, IA

10 HKFS Staff Brokerage Operations Sue DeSousa, Client Services Supervisor Chris Moore, Client Services Representative Compliance Karen Turner, Compliance & Licensing Specialist Financial Services Assistants Angie Recker - Supervisor, External Administrative Services Alicia Michels Dubuque, IA Amy Wertz - Dubuque, IA Andrea Booze Omaha, NE Stacey Huls Sioux Falls, IA

11 HKFS Staff Insurance Operations Kathy Pottsy Herrig, Underwriting Specialist Abbey Rodham, Executive Assistant Jody Steger, New Business Coordinator RIA Investments Matt Morey, Senior Investment Advisor Kathy Waterman, Investment Analyst Julie Wilson, RIA Trade Specialist Kelly Edmonds, Investment Assistant Russell Mills, Investment Analyst RIA Operations JoAnn Kramer, RIA Operations Manager Jeanna Kueter, Client Services Representative Lori Saylor, New Accounts Representative Jill Herbst, Operations Assistant

12 Duties of Administrative Assistant for Financial Services To maximize the value of CPA time, and to assure on-site firm compliance in the area of financial services, HKFS recommends that each affiliated CPA firm designate at least one Administrative Assistant for Financial Services to perform the duties described below. Prospecting Investment & Risk Management Audit Worksheet completed with copy of all client statements (front and back) sent to Financial Advisor Risk Management Case Reviews gathering in force illustrations and policy data Risk Management submit quote request forms on Account Opening Preparing new account applications and other required forms Checking all documents are secured and complete Copying, mailing, creating in-house files Preparing receipts for clients Follow-up with client on client account issues (initiated by HKFS) Printing client statements for IAR/Rep when needed Fielding communications between CPA and FA and other customer service calls Scheduling client meetings

13 Duties of Administrative Assistant for Financial Services Account Maintenance Preparing Operational Forms (ex. Change of Address, title changes, systematic deposits or withdrawals) Additional Duties for Brokerage Operations Maintaining a check / security register and correspondence file Set up and use the internet access to appropriate websites Check appropriate websites for brokerage alerts (news and memos to brokers), suspended commissions, and commission reports. Perform trades at mutual fund level and prepare and fax trade ticket Additional Duties for Insurance Operations Follow-up with HKFS underwriter for additional requirements Other Duties Submit newsletters, correspondence, advertisements to Compliance for approval

14 Asset Management (RIA) Account Size over $50,000 Higher level of service for client Charge quarterly management fee based on market value (in arrears)

15 Asset Management (RIA) Two choices of custodians, Schwab or SEI Schwab Institutional Best for investments in individual stocks and bonds, hold mutual funds that fall outside HKFS recommended fund list, or require higher level of attention Schwab monthly statement HKFS quarterly statement with performance SEI Best for investment in mutual funds or money managers Automated systems: quarterly rebalance with no minimum fees. DCA, no short-term term redemption fees on manager or allocation changes Quarterly conference calls for advisors and clients Exceptional marketing support for advisors

16 Account Forms Checklists REQUIRED SCHWAB/SEI FORMS: Account Application Account Transfer Form (attach most recent complete copy of client s s statement dated within last 90 days) Schwab Prime Broker Amendment/Confirmation Notice Authorization (for accounts with balances over $125,000) Automatic Deposit/Withdrawal Form (optional) Schwab MoneyLink Form or IRA Distribution Form SEI Auto Investment Program or Distribution Form (IRA & Non-IRA) Trade Confirmation Report Subscription Form For quarterly trade confirms via mail

17 Account Forms Checklists REQUIRED HKFS FORMS: New Client Data Document (NCDD) Discretionary Asset Management Agreement (DAMA) copy to client CPA Disclosure Form (For CPA s s Client File Only No Copy needed at HKFS) Consultant s s Disclosure Letter (if required) Investment Policy Statement (IPS) copy to client Service Agreement (if required) Form ADV Part II & Schedule F of ADV must be given to client Form ADV Part II Receipt Privacy Disclosure Document must be given to client Cost Basis Request Letter for taxable accounts

18 HKFS Forms & Website Each of the Required HKFS Forms can be found separately or in a mergeable packet on the HKFS website New Account Packet has all forms available in mergeable format except CPA Disclosure, ADV and Schedule F Instructions on how to download the New Account Packet is on the website in the forms section A user ID and password is assigned for the HKFS Affiliates section (secured area of website) Click on Quick Login to go directly to client statements Cost Basis Letter is recommended for taxable accounts

19 HKFS Forms & Website Other key information on website HKFS Recommended Stock List HKFS Investment Committee Meeting Summary Benchmark Reports latest month and year end Operations Update

20 HKFS Client Statements Quarterly & Monthly reports Client Statements are mailed on or about 11 th of month following end of quarter. IAR copy posted to website two days prior. sent by Operations when reports are available. We suggest you save to your system for ease and convenience Sample Statements, use Quick Login user ID: hkfs,, password: info

21 HKFS Client Statements Gain Loss Reports Posted to HKFS website 3 rd Quarter, end of November & 4 th Quarter for Non-Qualified (Taxable) accounts only. IRAs not included. Also include Tax Information Summary report and Income & Expense report which summarizes fees for year Clients receive 4 th Quarter only and are mailed in separate envelope marked Tax Documents Enclosed in red Highest Cost Account Method reporting system reflects the highest cost basis as the units sold for cost basis purposes and realized d gain s and losses. To choose specific tax lot for specific trade for gains g or losses, advise Operations.

22 HKFS Client Statements Purge Schedule 5 quarterly reports are available on the website Year end reports are not deleted When we are going to delete a quarterly report package, we will notify via with weeks advance notice

23 Schwab & SEI Required Forms REQUIRED SCHWAB/SEI FORMS: Account Application Account Transfer Form (attach most recent complete copy of client s s statement dated within last 90 days) Schwab Prime Broker Amendment/Confirmation Notice Authorization (for accounts with balances over $125,000) Automatic Deposit/Withdrawal Form (optional) Schwab MoneyLink Form or IRA Distribution Form SEI Auto Investment Program or Distribution Form (IRA & Non-IRA) Trade Confirmation Report Subscription Form For quarterly trade confirms via mail - Always use the most current form from the custodian s s website - All fields must be completed including employment information so for example if self-employed, employed, must indicate nature of business

24 Websites and Forms Schwab 5 different applications (Account Application, IRA, Company Retirement, Simple IRA, SEP IRA) Must include HKFS Master Account Number ( ) on applications along with CPA Firm sub-link number direct client access: and call f To find applications, go to Account Applications Tab for a wizard, to find other forms, go to Accounts, then Forms, and the forms are alphabetized. Adobe Acrobat but can type client information in form Account Profiles and Reports are valuable tools

25 Websites & Forms SEI 4 different applications (Non-IRA, IRA, Qualified Plan, and Managed Accounts (IMAP) Must include Honkamp Krueger Financial Services as broker/dealer name on applications direct client access: To find forms, go to Account Administration, then Forms Library IAR must sign the application and HKFS custom model can be found on 4 th page of Investment Policy Statement (IPS) SEI does not hold Simple IRAs SEI does not hold Limited Partnerships, Real Estate Inv (REITs), Class B Mutual Funds, proprietary funds, foreign equities, rights, warrants, options, and un-priced securities Statements & Tax Forms and Activity Detail are valuable tools

26 Transfer of Assets Every transfer is different due to different assets and different custodians/transfer agents. They can be complicated and timely. Complete a Transfer Form for each account to transfer. We suggest st you have client sign 3 or 4 extra forms. Minimize problems or delays by checking: 1. Account Registration For example, transferring from Individual to Joint account requires a separate client signature stating giving up sole ownership. See Permissible Transfers spreadsheet 2. Asset Acceptability check on Schwab website under Forms section, Asset Transferability or Research, Mutual Funds. - Before liquidating Class B Shares, always check for surrender charges, c etc. - SEI does not hold Limited Partnerships, Real Estate Investments (REITS), Class B Mutual Funds, proprietary mutual funds, foreign n equities, rights, warrants, options and un-priced securities.

27 Transfer of Assets If funds do not transfer in-kind or need to be liquidated before transfer to Schwab, complete Schwab Transfer Form differently: - If mutual fund company transfer, complete Section #2 on Transfer r Form - If brokerage company transfer, complete Section #1 on Transfer Form but also client signs liquidation letter addressed to current custodian. See LOA on HKFS website, forms section. Certain transfers require additional information or other forms to be completed: - If transferring Simple IRA to IRA, must confirm that 2 year Simple IRA rule has been met. - If transferring 401(k) to IRA, complete Self-Directed paperwork instead of Schwab Account Transfer Form.

28 Transfer of Assets Charles Schwab Average Days to Completion for Transfers Type of Transfer Number of Business Days ACAT 7 10 Non-ACAT: Mutual Fund Companies 5 20 Banks/Trust Companies - Cash Stock, Treasuries, Bonds Mutual Funds Third Party Bank and Trust Companies Annuities and Insurance Companies Transfer Agents - Direct registration system (DRS) Dividend reinvestment (DRIP) Deposit withdrawal at custodian (DWAC) 3-5

29 Transfer of Assets List of Brokerage vs. Mutual Fund Companies Brokerage Companies AG Edwards Vanguard American Express- A/C # ending 021 Wachovia Securities Charles Schwab Wells Fargo Edward Jones UBS Paine Webber Ferris Baker Watts TD Ameritrade Fidelity A/C # total 9 characters, first 3 begin X,Y, Z or all numeric Legg Mason Merrill Lynch Morgan Stanley Northwestern Mutual Brokerage Piper Jaffray Principal Financial Group ProEquities Raymond James RBC Dain Rauscher UBS Paine Webber Vanguard A/C # total 9 characters-first 3 contain two numeric and V

30 Transfer of Assets Mutual Fund Companies AIM Funds Janus Funds Alliance John Hancock American Century ** IDEX American Express-A/C # ending 002IXIS IXIS American Funds Kemper American Skandia Liberty Funds Calvert Lord Abbott Colonial/Liberty Funds Mainstay Davis Funds MFS Dreyfus Funds Nuveen Eaton Vance Oppenheimer Evergreen Pilgrim Funds Federated Pimco Fidelity-A/C # begin w/2 followed by alpha Pioneer Fortis Masters Putnam Franklin Templeton Scudder Govett Seligman Hartford Strong Funds Thornburg T. Rowe Price Van Eck Vanguard Van Kampen Waddell & Reed Weitz Funds WM Funds Zurich Vanguard Fund number ID followed by A/C # ** Self Directed (403b) transfer requires Schwab Account Transfer Form as well

31 Account Maintenance Deposits Schwab Check Transmittal Form SEI Additional Investment Form - Checks must be negotiable and signed by authorized signer - Must be made payable to the custodian (not HKFS) - Schwab checks should be made payable to Charles Schwab FBO account name or account number -Checks with allocation instructions should match amounts - Always include contribution year for qualified accounts

32 Account Maintenance - Checks should be mailed to HKFS home office. If mailing direct to custodian, MUST send copy to Operations for compliance and follow- up. Same for Letters of Instruction. - Important to set up new accounts for new plan participants before first contribution - Schwab has Company Transmittal Form for Simple, 401(k), Defined Benefit Plans, etc. For example, there is a section to break out Employee/Employer match for Simple IRAs. For Simple IRAs, always include Employer Group number on form. - When you receive checks for a retirement plan sponsored by a business (Sole proprietorship, S or C Corp., Partnership, LLC, PC), whether that plan is a Simple, SEP,, 401(K), Uni-K, or a DB Plan, please make certain it is a check from the business,, and not a personal check. If it is a personal check, then please contact the client to get the check drawn on the proper per account. (This does not apply to personal IARs,, traditional or Roth). This can be a serious issue for the business, the plan, and for taxes for a variety of reasons. -Checks deposited take days to clear through the bank and can not be withdrawn during this time. - Investment instructions should be communicated directly, not on transmittal form.

33 Account Maintenance Withdrawals - Withdrawal power granted to HKFS on Schwab Account Application. SEI always requires client signature for IRA Distributions. - Limited to like registrations (Ex. Check mailed to client s s address of record or wired to bank account that has same account name) - If withdrawal is requested for unlike registration, the client s s signature is required - Wire deadline is 11:00 a.m. for Schwab - Fees: Schwab Wire Fee $25 SEI Wire Fee $10 Schwab Overnight Mail Fee $8.50 SEI Overnight Mail Fee $10

34 Account Maintenance - Timeframe of withdrawal request dependent on cash availability Mutual Fund liquidation normal 1 day settlement Stock liquidation normal 3 day settlement - Communication to client should set expectation based on these timeframes - Required Minimum Distributions (RMD) for RIA accounts are monitored by HKFS Operations Department, please advise of Inherited IRAs. - Julie Wilson ([email protected]( [email protected]) ) and Jeanna Kueter ([email protected] ) on all withdrawal requests

35 Account Maintenance Automatic Investments or Withdrawals - Schwab MoneyLink - SEI Automatic Investment Program (AIP) - Automatic deposits or withdrawals to client s s bank account - Takes approximately business days to set up initial transaction between the two banks. - Can be recurring amounts or on-request - No cost to client, two day process -SEP IRA, Simple IRA and QRPs do not qualify

36 Account Maintenance Address Changes - Schwab requires client s s signature to change, SEI does not require signature - HKFS will change all systems within departments upon notification - Group Qualified Plans require trustees signature

37 Compliance Files Files should contain same information as securities client s s files, plus: - Advisory Agreement - ADV Receipt for Part II Delivery - 3 rd party paperwork (if applicable) File should be separate and distinct from commission-based and other client files Quarterly Performance Reports (SEI or Outside Managers)

38 RIA Operations Team JoAnn Kramer RIA Operations Manager - Management fees & HKFS Client Statements Lori Saylor ([email protected]) [email protected])- New Accounts Rep - New account set-up, Forms, Address Changes Jeanna Kueter ([email protected]) Client Service Rep - Reconciliation of all transactions, Distributions Jill Herbst ([email protected]) Operations Assistant - SEI, Transfers or