Frequently Asked Questions
Definitions:
1. Field Advisor: Registered Representative of H.D. Vest Investment Services, Inc. who wants to partner with Referring Advisors and provide investment services.2. Referring Advisor: Registered Representative of H.D. Vest Investment Services, Inc. who provides his/her clients with an opportunity to meet their financial needs through referral to a Field Advisor.
3. Partnership: A Field Advisor and Referring Advisor who have been matched and actively participating in the Partners Program.
4. Partners Agreement: Sets forth the terms and conditions of a partnership, including how commissions and fees will be divided. The Partners Agreement incorporates the Partners Program terms and conditions.
5. Participating Advisor: A Field Advisor and/or Referring Advisor who actively participates in the Partners Program.
6. Program Transactions: Transactions derived from referrals provided by the Referring Advisor for the Partners Program.
7. Partnership Number: This number assigned to the Field Advisor by H.D. Vest for all program transactions. The Field Advisor will be the Representative of Record, Agent of Record, and/or Investment Advisory Representative of Record for all program transactions throughout the term of the partnership.
Questions:
1. What is the Referring Advisor profile?- Tax and/or accounting practitioner,
- Maintains specialization in tax or accounting without expanding into non-traditional services,
- Recognizes need for financial planning services, but would prefer to partner, with a third party without putting client ownership/relationship at risk,
- Receives compensation from financial planning for client referrals, and
- Adds required licenses in order to receive compensation.
- Refer suitable and qualified clients to the Field Advisor for financial services, and
- Support the marketing initiatives of the Field Advisor.
- Tax or accounting practitioners who have fully integrated financial planning services and wish to continue to expand the financial planning component of their practice, or
- Non-tax or accounting practitioners who would like to work with traditional tax and accounting practitioner Advisors.
- Must be willing to commit to minimum required marketing efforts and time to build the partnership.
- Maintains $100,000, 12-month rolling gross,
- Carries all licenses: mutual funds, securities, advisory and insurance,
- In good standing with Compliance and Sales Supervision,
- Maintains Errors and Omissions coverage, and
- Consistent communication with H.D. Vest home office.
- Markets financial services to Referring Advisor’s client base,
- Observes contractual non-compete clauses designed to protect Referring Advisor from competition for traditional tax services,
- Recognizes Referring Advisor retains client ownership for tax services, and
- Writes all referral transactions through the Partners Program.
Absolutely. We understand a successful partnership will be dependent on the dynamics of the personalities involved. Both parties will want to interview the other to find out about the potential for financial services, investment philosophies, expected involvement in the program, etc. In some areas, more than one Field Advisor may be available. The Referring Advisor will be given an opportunity to find the most suitable partner for their business. No partnership will exist until H.D. Vest receives an executed copy of the Partners Agreement.
7. Do Referring Advisors have to maintain licenses?
To receive compensation for program transactions, Referring Advisors must be duly licensed. That means Referring Advisors have to maintain licenses, which includes renewal fees, compliance and continuing education requirements, etc. Referring Advisors will not receive compensation if they are not properly licensed at the time of the transaction.
8. How will H.D. Vest track program transactions?
Each partnership will be assigned to its own H.D. Vest Advisor number that is separate from that of the Field Advisor’s and/or Referring Advisor’s original Advisor number. The Field Advisor will utilize this unique number for all program transactions from a particular partnership. When program transaction compensation remits to H.D. Vest, the commission system will recognize the transaction as a Partners transaction and split compensation as provided in the Compensation Agreement. Referring Advisors will see transactions accumulate on their individual commission statements. Field Advisors will see transactions pay out in separate sub-sections of their commission statement. H.D. Vest will be responsible for issuing 1099s to participating Advisors.