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Pre-screening
- Evaluate the source of the referral:
- Is the prospective advisor referred by a trusted known source with values/beliefs compatible to the NEF values and beliefs? Are the recommendations of source positive?
- Is the advisor referred by an unknown source or by a source with unconfirmed values/beliefs?
- Has the advisor called NEF directly?
- Interviews with the management (Anton and Terry). Elements of the personal situation to evaluate:
- Availability and willingness to work full time for new advisors;
- Financial reserves for new advisors;
- Willingness of the family to support the prospective advisor for new advisors;
- Past personal success stories;
- Confidence;
- Motivation, drive, readiness to work;
- Autonomy;
- Why willing to change? Relationship with existing firm: problems, conflicts, outstanding debt, clients complaints, CHARGEBACKS, leverage accounts
- Family situation: responsibilities, relationships
- Financial stability and history
- Sources of business – self generated or dependent on externally provided/purchased leads;
- Sales figures for the last 3 years;
- Predominant products, services, companies sold and serviced. WHY? Listen for higher commission/personal interest vs. client needs and client protection;
- Policy service and Stay-in-touch systems in place. Evaluate ability to build relationships;
- Average number of services/accounts per client. Evaluate relationships building;
- Client segmentation – how often do you contact your A clients? Relationship building;
- How many referrals have you gotten last year?
- Persistency issues. Ask for canceled contracts as a % of total book of contracts;
- Do you feel you are in a good business? Would you recommend it to friends?
- Fill out the Independent Advisor Application. Review answers and if needed, further discuss and clarify positive answers on:
- Credit Report / Credit history
- Interruption in License and or E&O Coverage
- Are there pending Collections and / or legal items (Usually flagged on the credit report)
- Bankruptcy / Consumer Proposal / Garnishments
- Insolvency issues
- Outstanding debt with Insurance Carrier, MGA or Fund Company
- Suspension of license or license being revoked
- Regulatory Reprimands or Enforcements / Disciplinary actions / Fines
- Criminal Activity or Offences (Charges and convictions)
- Client Complaints (past, actual or potential future complaints)
- Persistency Issues (Policies that are placed but do not remain on the books)
- Leveraging (is the client advisor’s block Highly leveraged)
Hiring
- Obtain copies of active license and errors and omissions insurance and void check
- Sign producer’s contracts with contracted MGA’s
- Sign a producer’s contract with NEF
- Collect authorization for collection of monthly service fees
- Setup a Sync.com account for clients files and share it with the compliance officer
- Setup an advisor account with tools.nordestfinanciere.ca
- Pass a compulsory training on:
- The Compliance Manual and all Compliance policies and procedures;
- The compliant client’s file including:
- Clients authorizations
- Advisor’s disclosure
- Clients information
- Communication log
- Notes from meetings and conversations
- FNA
- What’s your risk
- Needs analysis for life and living benefits
- Existing protection analysis and records
- Suitability of recommendations
- Documenting of advisor’s recommendations and client’s decisions not to follow them (if it is the case)
- Recommendations supporting material
- Application and supporting documents
- Investor profile questionnaire
- Addendum for Diploma sales
- Notice of replacement
- Copy of replaced policies
- Proof of NOR delivery to owner/insured, old insurer and new insurer
- Policy delivery
- Reason why letter
- Policy summary
- Clients servicing requests
- Transaction records
- Separation of files: spousal files, insurance and investments
- Documents we are not allowed to collect/have/keep on file
- Sign confidentiality and non-compete agreement for employees
- Verify security of equipment:
- OS system on autoupdate
- Device is password-protected with a single user, no other users
- User is logged off if inactive for max 5 min and at lid closing
- active Firewall
- anti-virus on autoupdate
- disk encryption
- Installed password manager: recommended https://www.enpass.io/downloads/
- Recommend a VPN provider – Surfshark or NordVPN. If not, look for the following features: no-log, kill switch, private DNS and leak protection, AES-256-GCM encryption
- Set a @northeastfinancial.ca email
- If Gmail in use, install the FlowCrypt Chrome extension for encrypted emailing
- Email signature setup: go to this document for privacy disclosure and email signature text.
- Approve and order business cards.