Pierce: Recruiting Creativity Paying Dividends for Janney
First, Janney continues to have solid recruits start on a very consistent basis. They have had some very big wins in their footprint – specifically Naples, Fla; Columbia S.C.; Baltimore/DC Metros and NYC. The recruits they are landing are primarily from MS, RBC and Wells. They, like some firms, are looking to recruit above their averages. The average Janney FA does almost $700k with a book nearing $100 million in AUM. The exception to the norm is the Rising Star and Setting Star deals.
is the privately held wealth management boutique based in Philadelphia. They recently rolled out a new “Setting Star” program to their branch managers. They had been using the Setting Star program for the past 60 days and have now formalized it for street recruits.
Jerry Lombard, The President of JMS for the past twelve years commented: “In my twenty plus years at JMS, from the trainee program to my current role, I have always known that the number one concern for FA’s considering retirement is “who will take care of my clients?” The relationship the FA has with their clients has been forged through market cycles and more importantly, through the changes in the lives of each and every client. FA’s need to know that their clients will be well cared for. We recognize that and have spent time creating what I believe to be the industry standard Setting Star Recruiting and Succession Plan.”
Janney allows an FA to retire from a client focused, non-public boutique with over 185 years of experience. What’s interesting is that the Janney program allows the FA to:
• Fully customize a personal transition package
• Continue commissions for up to five years after retirement at a 46% payout
• Continuing commissions to the FA’s estate after death
Janney provides successful financial advisors a highly competitive total compensation package that handsomely reward FAs. For FAs not already in a team, Janney will work to recommend a Financial Advisor to take over your practice and provide ongoing coaching to ensure a smooth transition. They will also work to transition an FA from another firm to be your partner.
Jerry Lombard also commented: “Our Setting Star program provides an FA peace of mind that their clients will be well taken care of while also recognizing that their sweat equity over all these years has meaningful value.”
The program is structured to insure that the FA doesn’t have to sign an onerous 9 year transition note before retirement. Janney provides a customizable award as well as an award that is earned when 75% of assets transition. After the customized time frame, the FA gets up to five years of commissions that the book produces based on a split with the successor FA.
Every firm seems to talk about taking care of their FA’s when they are ready – the Janney Setting Star program provides peace of mind, a meaningful transition package and continuing succession payout at 46% for up to 5 years. Well done Janney!
John Pierce spent more than twenty years at Merrill Lynch and Ameriprise. He earned his MBA from The University of London and lives in Philadelphia. For less than the cost of your next grande non-fat latte you can download his and pick up the paperback for team members .