Slideshow Best ideas we heard at BISA

Published
  • March 16 2017, 2:51pm EDT

Bank Investment Consultant decamped last week to Hollywood, Florida, for the annual Bank Insurance & Securities Association convention. We attended as many sessions as two people can, and wrote a number of articles. Topics ranged from the fiduciary rule to adviser compensation to cutting clients.

Scroll through to see the best ideas and most interesting comments we heard throughout the conference from the sessions and keynote speeches.

Read More:
Changes are coming in bank adviser compensation
What clients don't know can hurt you
LPL puts final touches on product lineups in preparation for fiduciary rule
Advisers resist downsizing clients as brokerage firms press for change
Making plans more important than ever in fiduciary world
Long-term care insurance: Start small and build

Program managers are driving their advisers to consider downsizing their clients and moving them to other channels where they might be better served. Webster Bank, for example, is working with 10 of its top producers to whittle their books of business from 1,500-plus clients to just 900 over the next two years. Eventually the bank would like to see their books go down to 500 clients and eventually to 200.

Read more: Advisers resist downsizing clients as brokerage firms press for change

Content Continues Below


Bielan was discussing goals and incentives and the discussion turned to Wells Fargo and cross-selling. He was making the point that cross-selling can be fine as long as it’s done right. He was on a panel discussion called “Anatomy of Successful Business Plan.”

Read More: Changes are coming in bank adviser compensation

Educating clients about the fiduciary rule is critical as 25% to 50%, depending on the segment, have never heard of the rule, and those who have don't know what it means. However, once the rule is explained, many become concerned about the advice they received in the past with 29% considering changing their financial institution.

Read more: What clients don't know can hurt you

Buck was discussing the need to educate clients that the value of an adviser goes beyond simply the costs of investing. He was a participant on a panel discussion called “Financial Planning & Advice Are Here To Stay.”

Content Continues Below


If President Trump stays focused on deregulation and three other "pro-growth" agenda items of comprehensive tax reform and infrastructure and defense spending, he might be able to maintain the U.S.'s position as the "strongest economy in the world," Insana said during a keynote address on Wednesday. Unfortunately, the president keeps "stepping on his message on a regular basis since taking office," Insana added.

Don't confuse goals with vision, Weylman said. Shoot to have the highest retention of assets or the highest customer satisfactions scores, which are visions, rather than simply aiming for more sales, which is a goal. He rallied bank wealth executives and program managers during his keynote address.

Bielan was discussing some of the pitfalls banks can encounter when trying to find alternatives for adviser compensation. He was a participant on a panel discussion called “Anatomy of Successful Business Plan.”

Read More: Changes are coming in bank adviser compensation

Content Continues Below


LPL has been pushing to standardize its investment products so that products within the same category have the same terms, commission rates, contingent deferred sales charges and expense ratios, according to Arthur Osman, senior vice president in the LPL division that supports banks and credit unions. The firm has already standardized its variable annuities and alternative investments and is doing the same for mutual funds as well as fixed and indexed annuities. The standardization process for all product categories will be complete by April 10, assuming the fiduciary rule is effective by then.

Read more: LPL puts final touches on product lineups in preparation for fiduciary rule

When addressing the topic of long-term care, advisers should not immediately launch into a conversation about nursing homes and present clients with options for comprehensive – and therefore expensive – insurance coverage. The sticker shock will scare them, according to Eckert. For many people, insuring for the basics of home health care "might be enough to keep the wolves from the door," she said.

Read more: Long-term care insurance: Start small and build

Coleman was discussing the downside of a planning strategy for advisers. He said his bank added a bonus for planning business to help offset the decline they saw. Coleman participated on a panel discussion called “Anatomy of Successful Business Plan.”

Content Continues Below


Stathis was discussing how some of the past trends at banks are not conducive to the future of the channel. He co-moderated a breakout session called TPM Client Bank/Credit Union Peer Group.

Cole co-moderated a breakout session called TPM Client Bank/Credit Union Peer Group.