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AFW 6.1 — Team Building — #1: Joing Innovation Partners & AdvisorFirst Group

1. Joining IP

Pro-Tips

  • Visit the fees and licensing calculator to calculate the exact fees and steps to get licensed.
  • If you haven't made the jump to IP and are about to, call your respective custodian if you're awaiting giant commissions. Just explain your situation and they will hold your commission until you jump over to IP. I did that with Sammons and AMF and saved $17k in commissions!* -Julian Rodriguez

Step 1: Getting licensed

Life Insurance License

Tip

  • Obtain your Life Insurance license before getting your securities licenses and getting appointed with IP Securities.

State Licensing

  1. Prelicensing Education: Complete the 20-hours of Life prelicensing education requirements via a CA approved prelicensing course (online or classroom). I recommend the Kaplan CA Pre-Exam Life Study Course. $350

  2. Schedule and take license examination: Schedule exam with PSI. $80

  3. Fingerprinting: Fingerprint technicians will be available at CDI’s license examination site located in Los Angeles or at PSI’s 20 test centers that are located throughout California. The Live Scan Service Request form, LIC-442-39A, is given to the applicants when they are seated to take the license examination. $18

  4. License Application: After passing the license examination, go to sircon.com to submit an electronic license application. If documents are required please attach those documents to the electronic license application or these documents can be submitted to the National Insurance Producer Registry’s Attachments Warehouse.

  5. Check status: License applicants can check the status of a license application by going to the California Department of Insurance Check License Application Status Services (CLASS).

Anti-Money Laundering (AML)

Federal law requires insurance agents to complete Anti-Money Laundering after you've passed your exam. The easiest way to get your AML is to use LIMRA, which is free. You'll need your NIPR Agent # as your username to login.


Securities Licenses (6 & 63)

Pro-Tip

Securities Study Tips

"Work expands to the time allocated."

  1. The first step in obtaining your securities license is to schedule your exam. Before you order your study material; before you begin studying; before you 'think too much' - just schedule that date. Until you have an exam date, you haven't really started. If you don't have a set date for your exam, you'll be more likely keep putting it off. But with a firm date scheduled, you'll have self-imposed pressure to get studying and get it done. I recommend about three to four weeks in the future. Any period longer than that and you're just procrastinating."

  2. Use Kaplan study material. Over the years I noticed that the reps who use Kaplan have better success passing exams than those who didn't.

  3. Follow all of the study recommendations from Kaplan.

The Best Study Method

  1. After you've read/watched/studied a section, build a custom quiz with Kaplan for just that section of 20 questions. Take the quiz. If you pass you're done and move on to the next section. If you don't pass, re-generate the quiz with new questions and take it again. Keep doing this until you pass.

  2. After completing the next section, do the same.

  3. Now, generate another quiz that is also 20 questions, but included the previous sections and the current section. For example, if you've just finished reading section 6, you'll first create a 20-question quiz for section 6. After you pass it, then generate a 2nd quiz that includes sections 1,2,3,4,5,6.

  4. Take these two quizes everyday until you've complete this with all sections. Sometimes you'll be done within 30 mintues!

  5. Now, you're ready to take the practice exam that mimicks the real exam, and make sure you get at least a 80% - now you're ready!


Adding Variable Annuities to Your License

In order to sell variable annuities you need to add a "Variable Products amendment" to your state insurance license. Do this after you have both your life insurance and securities licenses.

Next, you can get appointed with various variable annuity carriers (start with Jackson), but not until you have a case to submit. Each variable annuity carrier requires product-specific training, which are free.


Step 2: Retaining Your Data from Your Previous Firm

If you are a brand-new Rep and not transitioning from another firm please skip to Step #4.

Pro-Tip

  • If you haven't made the jump to IP and are about to, call your respective custodian if you're awaiting giant commissions. Just explain your situation and they will hold your commission until you jump over to IP. I did that with Sammons and AMF and saved $17k in commissions!* -Julian Rodriguez

Do all of the steps in this section before resigning from your firm.

If your previous firm used DocuSign then download all of your DocuSign documents/envelopes. You will need these when you do your agent-change forms. Afterwards delete all data and empty the trash.

Delete all of your applications in LaserApp.

If your previous firms used Google Workspace, or Google Services in general, the simplest way to export your data is to use Google Takeout. I recommend exporting everthing. However, GT often changes the formatting of the exported data, so in addition you may also want to:

  1. Import all your emails from your previous BD into your personal Gmail, using POP (works in most casaes).

  2. Export your Google Contacts via CSV.

  3. Export all your files from from Google Drive using Shared Drives and/or use Google Takeout.

  4. Export your Company Google Calendar into your personal Google Calendar.

  5. Export your Chrome browser bookmarks (under the profile associated with your former firm's email address).

  1. Download your client list from American funds via CSV.
  2. And other fund families / variable annuities.
  3. Log into DST Vision and export all of your data. Once you're registered with IP you'll have a completely new DST account.

You may have other servies that are attached to your former firm's email account. If so, then log into each of them and change the email to your personal email. Some examples:

  • Calendly
  • Redtail
  • RightCapital
  • LinkedIn
  • Facebook
  • Mutual fund family web sites
  • Variable annuity company web sites
  • Insurance carrier web sites
  • MarketingPro
  • HelloFax

After you've exported all your data and verified it, then delete everything before you resign. Especially important:

  • Gmail: Delete all emails and then empty the trash.
  • Drive: Delete all files and then empty the trash.
  • Calendar: Delete all of your calendar(s).
  • Keep: Delete all of your notes then empty the trash.
  • Contacts: Delete all of your contacts then empty the trash.
  • Photos: Delete all of your photos then empty the trash.
  • Chrome browser. Delete all of the bookmarks.


Step 3: Resign from your Previous Firm

Send an email to your old firm's compliance officer. Simply write...

Script

With this email I resign from XYZ and all of it's affiliates.


Step 4: Electrontic Fingerprinting

Warning

You must get fingerprinted (again) even if you are already licensed and transferring from another firm.

You can complete the fingerprinting before submitting your Docusing securities paperwork to IP.

  1. Visit BrokerFP to schedule your fingerprinting scan.

  2. When you to the field office to get your scan you'll provide the following information:

    • IP's fieldprint code: FPInnovationPartnersAP

    • For "employer" write: Innovations Partners, LLC

    • For "employer address" write: 5950 Fairview Rd, Charlotte, NC 28210-3104

  3. Once completed, you'll get a confirmation email. Please forward this to management@ipfinancialservicesllc.com. Your fingerprints will also be automatically sent to FINRA and available electronically to IP.


Step 5: Fill Out the DocuSign IP Pre-Reigstration Forms

  • Ask Michael to email the IP DocuSign agreement to you (you don't need to have a DocuSign account).


Step 6: Recieve your "Welcome" Email

  • Within a week you will recieve a "Welcome to IP" email. There will be forms for you to review.
  • You will also receive a "Compliance Packet" email that includes more PDFs for you to fill out and return.
  • One of the emails will include your new @innovationpartnersllc.com email address. It is hosted by MS Outlook. Your IP Rep ID will also be included - notate this as you will need it often.
  • Provide Michael with your new IP email and rep ID.


Step 7: Pay Your Upfront IP Fees

You will recieve an email that contains an invoice to pay your upfront fees. You can pay via credit card. Remember, these fees are tax-deductible.

Info


Step 8: Change Your Clients to the "New" You


Inform Your Clients of Your Change

As per Nick Murray (NMI 2021-12) there is one thing, and one thing only, that needs to be said. And it needs to be said with every ounce of passion and conviction you can muster:

Script

In the end, I made this decision for one overriding reason: it will meaningfully enhance the quality of the work I’m able to do for my clients, as well as the quality of my family’s life.


Longer Email for Agent-Change Form

Script

I have a big announcement... after 13 years at Parsonex I decided to leave in February to find a better broker/dealer to work with. After a few months of intensive research I have found the right fit for me, Innovation Partners.

I made this decision for one overriding reason: it will meaningfully enhance the quality of the work I’m able to do for my clients, as well as the quality of my family’s life.

As wonderful as this is for me, it doesn't directly affect you or your accounts. A broker/dealer is merely the firm that process my paperwork and payroll, manages compliance and sets-up the agreements between me and the investment firms (such as American Funds). For example:

  • Previous: American Funds ---> Parsonex ---> Advisor (me) ---> Clients (you)
  • Current: American Funds ---> Innovation Partners ---> Advisor (me) ---> Clients (you)

However, for me to continue to manage your investments I will kindly ask you to complete an Agent-Change form (via DocuSign) to re-assign me to your accounts. This will NOT alter your account in any way and there is NO charge. I've sent you the DocuSign form to e-sign in a separate email.


Re-Assign Yourself to Your Clients' Accounts

  • Send out the DocuSign agent-change forms en mass. Ask Michael for help.


Step 9: Additional Licensing & Getting Appointed with Carriers

Wether you are a newly licensed Advisor or transferring from anoter firm you must complete the 529-Plan certification.

  1. Complete the AML 529 Plan CE training course through QuestCE. Make sure to download the Certificate of Completion PDF and attach it to the Docusign below.

  2. Michael will send you a Docusign that includes the following:

    • Read the MSRB Investor Brochure. Make sure to provide a copy of this PDF to each client at the time of solicitation of a 529-plan.
    • Read the MSRB Investor Brochure.
    • Sign the Representative Attestation 529 Plans Municipal Securities.

Every year you will recieve an email from IP indicating it is time for the Firm Element and a list of the courses you need to complete and the due date; you usually have two to three months to do so at your leisure. The courses are online hosted by RegEd/NRS Fire. The annual cost to RedEg to cover all courses is only $50. 1. Complete all the required courses at RegEd/NRS Fire and save te PDF Course Certificates for each one. 1. Email all your Course Certificates PDFs to compliance@innovationpartnersllc.com. Always include your IP Agent ID.

  • You must get re-appointed with all carriers you want to do business with even if you were already appointed via your previous B/D.

  • IP's FINRA CRD #: 146344

American Funds
  • IP should have done this for you. Log in and double-check. If they did, then you may want to verify your email and phone number (mine was wrong).
  • Phone: 800.421.0180
Jackson Varialbe Annuities
  • Send an email to Ashton Lawrence request an appointment with Jackson and he will set it in motion and provide you with instructions.


Frequently Asked Questions

Compliance on parking your securities license

The Compliance Department is reviewing representatives’ production on a semi-annul basis. NASD Rules 1021(a)/1031(a) prohibit the “parking” of registrations. To be considered an active representative there is an annual minimum production requirement of $5,000 GDC.

Can I waive the E&O with IP if I already have another form of E&O, such as Real Estate, Insurance? Or can I get it on my own?

In order to write securities business a broker dealer must be covered either by a third party insurer or through self insurance. E&O insurer requires that all the reps acting on behalf of the BD/RIA/Agency are also covered under that policy. This way all parties are covered under one umbrella (policy). There are no exceptions to this.

Now this policy will cover our reps for all securities, advisory, and insurance business written and paid through IP. It does not cover any other business activity done outside of the firm. But that is ok because any rep who has other outside business activities is allowed/expected to obtain additional coverage for those activities i.e., mortgages, P&C, Real Estate, Accounting, or any other professional activity that requires coverage.

Note from Michael: I have never seen any B/D have a monthly fee as low as $160, so I think this question is moot.

Should I get my CFP or other designations?

Make sure you are getting a ""designation"" for professional development, not as a form of avoidance behavior. It will not help you with prospecting or closing.

The CFP in particular requires a college degree and three to five years of experience in the securities industry. The exam is also very expensive and difficult.

I strongly recommend, you at least earn $100,000 in prior to getting any designations. Get real-world experience and make money.

It took me many years to learn this, but we are really just in the investment business, specifically retirement planning. We are not in the budgeting, debt elimination, net-worth-calculation business. All that fringe stuff is, honestly, a large waste of time for us, and most clients don't follow it anyway, and those that do can get free tools online to do all that for them (I even send it to them, upon request).

Monthly Fees

  • The fees are assessed monthly. Many B/Ds charge them quarterly.

  • They are paid via your commissions (Thursdays), as opposed to writing a check at the beginning of the month/quarter.

  • You have a 30-day grace period because you are paying them through your weekly commissions until the end of the month (four or five pay cycles). If there is an outstanding balance by the last pay cycle of the month then your credit card will be charged for the outstanding balance."