Our Comprehensive Practice Protection Assessment was designed for advisors and business owners who understand the various risks across their practice and are seeking input and support to mitigate these risks. We complete an assessment focusing on the legal, regulatory and franchise risks associated with operating a practice – including a review of staff roles, existing contracts and practice agreements and succession plans. We will identify strengths, areas for improvement and provide a written summary and consultation including next steps to take to protect the value/equity of your practice.
Whether you are a solo practitioner with staff or part of a complex team, the equity in your practice is one of the most significant assets in your financial plan. In addition to the regulatory risk inherent in your client practice, there are also regulatory, legal and Franchise risk you face as a business owner that can negatively impact your equity. This process assesses your level of risk in these areas and company policies in place at your firm.
Our practice protection process starts with an overview of your existing practice structure, business and growth plans. Our expert will then conduct a detailed review of all practice documentation including team and operating agreements, staff documentation and agreements, succession planning and buy-sell agreements. If applicable, a review of legal entity documentation and operations will also be reviewed.
•Are roles clearly defined including permissible sales activity by role (PP/AFA/Advisor)?
•If advisor transitioned in as an AFA, was full disclosure provided on equity, control of client?
•Were clients set up in accordance with agreement (Primary, Servicing, etc.)?
•Are dissolution terms clear and are they balanced?
•Are there non-compete agreements with asset attrition clauses?
•Have regulatory roles and expectations been effectively communicated?
•Are there non-compete provisions in all staff member agreements – whether registered or unregistered?
•Are the non-competes time-bound and enforceable?
•Are performance expectations clear, and have reviews been conducted and documented?
•In complex team arrangements, are terms for client control, practice equity and capital equity clear and enforceable?
•Is there a written compensation agreement?
•Does it comply with regulatory requirements and company policies?
•Is it aligned with job description and job expectations?
•Does it comply with minimum wage requirements?
•Do job responsibilities and compensation align with classification requirements?
•Are there documented bonus provisions that can be tracked and verified?
The written assessment will include strengths and opportunities as well as suggestions for improvement. Our consultant will answer any questions you have during a phone consultation to review your findings.
Advisors will be given specific recommendations to address vulnerabilities in their practice.
Each Comprehensive Practice Protection Assessment includes a 60-minute consultation to discuss the outcome of the assessment and specific, actionable recommendations to bring your practice into compliance. Following the assessment, an advisor should be able to make clear decisions and take action to solidify his/her practice. If the advisor requires help with specific aspects of their business, recommendations will be made for next-steps along with quotes for any relevant work.
Cathy is a widely-sought expert in risk mitigation. She is an experienced senior executive with three decades of experience at various financial firms including Ameriprise Financial and Dain Rauscher. She has a deep knowledge of all aspects of the financial services industry. Her areas of expertise include risk management, FINRA, Department of Labor, business development, financial planning, and retirement planning. She obtained her law degree from William Mitchell College of Law.