independence, simplified - wells fargo advisors · time to fully understand the business owner’s...

Spring 2018

Independence, Simplified®

Michael Cowan, Branch Manager The Cowan Group

Margo Vuicich, Gulf Coast Region Head, Wells Fargo Advisors Financial Network

For financial professional use only


If you strive to be the best, then Wells Fargo Advisors Financial Network (FiNet) may be the destination you’re seeking. After all, FiNet is the choice for premier financial advisors seeking independence. Imagine an opportunity where you can build your own client-service model, control day-to-day operations, and design a legacy fit for your business, your family, and yourself. Because that is what FiNet offers.

At the end of 2017, FiNet was affiliated with nearly 1,300 financial advisors, 2,700 support associates and 600 practices

across the nation. The $103 billion in client assets that our top-tier advisors manage show a growth momentum that indicates no sign of slowing down.

But the move to independence is not for everyone. It requires thoughtful planning, a desire to run and grow your business, and unwavering dedication to do what is right for your clients. With those principles in place you can begin the transition to independence. Here at FiNet, you will work with a transition consultant who will guide you in establishing your business, moving your client accounts, and retaining your clients via a tried-and-true process. Thereafter, you can opt to leverage the products and resources of Wells Fargo to strengthen client service and loyalty. And for the long haul, you will benefit from FiNet’s commitment to help you grow and build equity in your practice.

But don’t take my word for it. Read on and see what current business owners have to say about their affiliation with FiNet. If their stories resonate with where you are and where you want to be, I invite you to further explore Wells Fargo Advisors Financial Network.

C. Kent Christian President, Wells Fargo Advisors Financial Network

2Move your clients

4Serve your clients

6Grow your practice

8FAQs

The Wells Fargo Advisors Financial Network storyWells Fargo Advisors Financial Network (FiNet) simplifies independence for successful financial advisors through relationships in order to help create an extraordinary business, life, and legacy.

As the independent brokerage channel of Wells Fargo & Company, FiNet provides an option for advisors who are looking for the best of both worlds: individual business ownership and access to the resources of one of the largest and most admired financial services firms in the country.

Advisors who choose to affiliate with FiNet have a variety of resources available to them, including transition support, business valuation services, access to industry research, technology, and quality products.

FiNet facts at a glance

Number of financial advisors 1,342

Number of practices 642

Total client assets under advisement $103 billion

Advisors’ average length of industry service 16.6 years

Home Office staff dedicated to Wells Fargo Advisors Financial Network business owners 95*

* These 95 are supported by nearly 6,000 Home Office and back office staff dedicated to serving the clients of Wells Fargo Advisors Financial Network as well as Wells Fargo Advisors and First Clearing.

As of December 31, 2017.

FiNet practice locations

For financial professional use only 1

2 For financial professional use only

Move your clients

André Cantareira–First Vice President, Practice Services Manager

FiNet helps every practice transition to independence by letting advisors focus on what’s most important—their clients.

André Cantareira manages a team of experienced transition consultants, commonly referred to as practice liaisons, whose responsibilities include guiding advisors through a successful transition to independence, introducing them to the Wells Fargo Advisors Financial Network culture, and providing ongoing, relationship-based, Home Office advocacy and support. When an advisor makes the decision to move to FiNet, the transition process begins immediately to help ensure a successful replication of that practice’s book of business. André explains, “Our team accepts shared ownership of each practice’s transition process, which ultimately leads up to, and includes, the transfer of their clients.”

Whether an advisor or practice is joining FiNet from a wirehouse, regional firm, or a different independent model, inherent in the transition is a wide range of details, tasks, and regulatory requirements—the most critical and emotionally charged of which is the way the book of business is transitioned. André says, “We understand the significance of creating an early emotional connection with the advisor based on a mutual understanding and appreciation for what he or she is undertaking. We take time to fully understand the business owner’s book of business, and we anticipate needs and potential obstacles. Also, we ask questions—lots of them. Fewer surprises on the front end equates to fewer surprises on the back end.”

André and his transition team educate and coach advisors throughout the transition process by connecting them to the appropriate resources and information to help ensure success on day one. This includes product, platform, operations, practice management, branding, supervision, and technology conversations. By the time the advisor’s registrations move to FiNet, he or she is fully prepared to focus solely on clients.

André emphasizes another key factor that contributes to FiNet’s successful client transition formula. He says, “The average FiNet business owner has 16 years of industry service. FiNet is composed of a very tenured, distinguished, and successful group of advisors, and we’ve seen time and time again that after all those years, their clients are truly their clients. The loyalty and relationships are firmly with the advisors.” André continues, “We keep in close contact with each new practice. We want to know how things are going; if our business owners are happy, we are thrilled. If there are frustrations, we are there helping to put them to rest. In the background, we monitor replication rates compared to what experience has shown us to be healthy progress, so we maintain a proactive presence in the critical post-transition weeks.”

So why FiNet?FiNet is a destination that provides freedom and flexibility in how advisors establish, market, and run their businesses. That flexibility, combined with the strength of the Wells Fargo brand and platform, creates an environment that allows advisors to serve their clients with a purposeful and intimate approach. In addition, each FiNet practice has the opportunity to create its own culture, serve their clients as they see fit, and determine what their legacy will look like.

“By the time the advisor’s registrations move to FiNet, he or she is fully prepared to

focus solely on clients.”


Independence with FiNet supports succession planning down the road

(L to R): Evelyn Carter–Branch Manager, Owner, Acequia Investment Group Devona Benavidez–Financial Advisor—Albuquerque, New Mexico

Evelyn Carter launched her career as a financial advisor more than thirty years ago. Quickly realizing that the boomer generation would start prepping for retirement, she knew demand would be high for planning services. In April 2012, Evelyn joined Wells Fargo Advisors Financial Network (FiNet) and established what would become Acequia Investment Group located in Albuquerque, New Mexico.

The move to FiNet proved to be the right decision because it gave Evelyn access to lending through Wells Fargo affiliates, planning, and technology resources, while allowing her to maintain objectivity and independence with her practice. It also helped Evelyn create an ideal environment for her clients. “It was important to have an office space that is accessible and welcoming,” says Evelyn. “My time with clients has nearly doubled with the new location.”

When it came time to start thinking about a succession plan and looking for her successor, Evelyn took a unique approach to finding the perfect fit by conducting her own research and vetting. “I knew the type of person I wanted in my practice and looked on the CFP site for Albuquerque,” Evelyn stated. “I wanted to get a feel for who the advisors with CFPs were and if I thought they would be receptive to speaking with me about succession planning.”

Evelyn believes it is important to bring more women into the firm. “I like to see diversity in the industry. The future of Financial Services is having a diverse group of leaders and I was interested in Acequia remaining a woman owned business.”

Evelyn reached out to Devona Benavidez who was currently working as a financial planner at a wirehouse. “When I met Devona, I really liked her personality and demeanor. I felt comfortable with her, and she asked great questions and took her time. It said a lot about her.” Realizing that the two were a match, Evelyn reached out to FiNet to help bring Devona on board. “FiNet stepped in to help us with the technical and logistical details.”

Devona who was content with the situation she was in, weighed in on the opportunity. With a nine-year tenure at her firm, Devona revered the independence and flexibility that Evelyn’s practice would provide. “I liked that Evelyn was able to run her business how she thought was best,” says Devona. “I didn’t want to move from a wirehouse to an independent

firm if it really weren’t different, but I could tell it was different with Acequia Investment Group and FiNet.”

With the help and support of FiNet, Devona made the move to Acequia Investment Group in June 2017. “FiNet worked with me and was conscientious to ask me if I felt that Acequia Investment Group was a good fit. I really felt comfortable with the business Evelyn had established. She had a very similar structure to what I was accustomed to but had the freedom to make her own decisions.”

Evelyn’s clients have welcomed Devona and the transition plan is underway. “We are still in the initial stages of the transition, but the good thing is that Evelyn had communicated to her clients what her retirement plans were for a while,” says Devona. “I am being introduced to clients, we have a game plan, and we are making sure the transition was seamless to the clients when Evelyn retires.”

FiNet remains an asset to the duo, providing a wealth of knowledge and experience in succession planning and offering support and advice every step of the way. “FiNet provides you with support on the back end and takes a large amount of responsibility off your plate if you are an independent owner. You have the support and resources of a large wirehouse with a hands-off approach,” explains Evelyn.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Acequia Investment Group is a separate entity from WFAFN.


Serve your clients

John Williamson–Senior Vice President, Director of Strategic Initiatives–Innovation & Growth

John Williamson and the Innovation & Growth team focus on providing the resources necessary for FiNet business owners to grow their practices and serve their clients. There are several key components that come into play when adopting growth strategies for a practice, but John says, the overarching reason for doing so is the same: keeping the end client top-of-mind.

One of the growth strategy pillars is mergers and acquisitions (M&A), which is one of the bigger growth components the Innovation & Growth team assists owners with. “Selling a practice is a hugely personal decision,” John says. “Successful M&A is all about what’s best for clients. At FiNet, we start with the client and work backward. During a recent acquisition that we helped facilitate, the seller shared that the client experience was a critical part of the deal. Post-deal, she insisted, her clients would have to be taken care of because, as she put it, ‘When I’m retired, I’m still going to live in this town and see them!’�”

For business owners interested in M&A, the Innovation & Growth team can offer counseling on deal terms and continue-to-work options. They work as consultants by illustrating and supporting the mechanics of buying and selling, such as valuation, contract terms, logistics of transactions, client communications, marketing redesign/ rebrand, success metrics on retention, and seller payments.

Another component is leveraging strategic vendors. FiNet’s independent model is rooted in offering advisors options to do business how they want and with whom they want. That is why John is constantly looking for new vendors who offer an array of services as a strategic advantage to FiNet business owners. He says, “We appreciate that each practice has a unique set of needs, ranging from marketing to recruiting to valuation to real estate concerns.”

Finally, another key growth component is preparing and planning for life events through continuity and succession plans. These plans can take years to develop and implement, so it is important to start early. “Having a roadmap for your practice is critical,” John explains. “We counsel business owners on continuity and succession plans that answer all the important questions: What’s best for the seller, his or her family, staff, and clients? The barometer of a successful continuity or succession plan is how well clients and survivors are treated and served.” Continuity planning (having a contingency plan for your practice in the event of an unanticipated major life event) can be part of succession planning (having a plan for your practice after you retire).

So why FiNet?John says, “FiNet’s Innovation & Growth team has significant M&A and succession and continuity expertise. Our strategic vendors help us create targeted, customized support for our business owners. And our Home Office and regional field teams truly care about the success and growth of every single owner.”

“We appreciate that each practice has a unique set of needs, ranging from

marketing to recruiting to valuation to real estate concerns.”


FiNet helps make merger and growth possible for Texas foursome

Steve Mills—Financial Advisor, Craig Conser—Financial Advisor, Brad Bays—Branch Manager, and Hank Baker—Financial Advisor—Tyler, Texas

One hundred and fifteen years. That’s the amount of combined experience Brad Bays, Steve Mills, Hank Baker, and Craig Conser bring to the table when a client walks through the doors of Trinity Capital Management. To put that amount of time in perspective, 115 years ago Theodore Roosevelt was President.

While their financial services industry experience surpasses more than a century, it’s a relationship that started just under seven years ago in Tyler, Texas, located on the eastern side of the country’s second largest state.

“We formed Trinity in October 2011,” Steve says. “Brad and I already worked together, and we knew Craig personally and asked him to join us. We were then able to form Trinity Capital Management. Then Hank joined us in 2014.”

This was a move that had been desired for a long time, but did not always seem possible. Wells Fargo Advisors Financial Network (FiNet) helped make it a reality.

“Steve, Craig, and I had talked about merging our practices for years,” Brad says. “The best way we could find to do it was moving away from a wirehouse and going independent through FiNet. Doing that made it possible for us to build the practice we had always envisioned.”

Allowing this collection of advisors to have direct control over their day-to-day business and operations, including the ability to select staff and office location, drove them toward FiNet.

“We truly love the independent side of the business,” Craig says. “It’s important for us to be able to do business the way we want to with the support of a company like FiNet that stays focused on helping us be great independent wealth advisors.”

“We wanted to be able to own and manage our own business without having the restrictions we might have with a wirehouse,” Steve adds. “We wanted to be able to manage our business the way we wanted to. At the end of the day, we all consider ourselves entrepreneurs, and just needed the flexibility of an independent shop, which FiNet provided us.”

Since joining FiNet, Trinity Capital Management has almost doubled their revenues. While they are very selective of the clients they bring in order to provide a very high level of

service, the practice added clientele and has increased its assets by nearly one third to more than $400 million. Brad, Steve, Hank, and Craig are also currently looking to add a new generation of financial advisors to their team.

“We’re in a big growth mode right now,” Craig says. “Over the last couple of years, we have made some changes to help ourselves really grow. The business development part of our company is going to be a strong focus for us over the next two to three years. I see us growing tremendously over that time frame.”

FiNet has also provided Trinity Capital Management with a number of resources that can be utilized to help the company grow. The ability to network with other advisors, attend conferences, and reach out to FiNet’s home office resources have been very valuable for Trinity.

“It’s been a great platform for us to utilize in our business development,” Hank says. “FiNet’s consultants are always willing to lend a hand with any issues we have or answer questions to help with our growth.”

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Trinity Capital Management is a separate entity from WFAFN.


Grow your practice

Alex David–Managing Director, Head of Branch Development and Marketing

Alex David describes his role with FiNet very simply. “My team grows FiNet as the independent-owner model of Wells Fargo Advisors, and we help FiNet grow in multiple ways.”

1. They develop new business owners and grow practices through recruiting.

Alex says, “Most business owners excel at client service. Very few have had experience in adding advisors to their practice. It’s a defined process and skill set. We teach them to use a latent form of the sales talent they already have. We hold them accountable for the growth goals they set for themselves.”

2. They help business owners tell their stories to clients and prospective advisors.

FiNet’s Marketing team helps business owners brand their businesses and offers insight to the innovations and industry trends occurring in the independent space. The team looks at a practice’s total messaging strategy, including website analysis, how they message to clients, and what a practice has to offer prospective advisors.

“Messaging to recruits is different than talking to clients and requires unique coaching,” Alex says. “My team shows business owners how to attract top talent by marketing their location, space, environment, and brand.”

3. They provide relationship management for new business owners.

FiNet has 95 team members who support business owners, from day one through succession and retirement. Alex oversees a talented team who help business owners and advisors assimilate to independence and who manage and maintain relationships over the growing and changing life cycle of their practices. He says, “Our people know what’s going on in their marketplaces. They are the eyes, ears, and sounding boards for our business owners. They build deep relationships with practices. They know how they started and what they’ve achieved as well as what their long-term goals entail.”

So why FiNet?“We look at every individual financial advisor or practice in a consultative way, then provide a growth road map plus the capital, technology, and recruiting expertise to get them there,” Alex says. “When an owner has a vision of where his or her practice should be and they see we have the resources to help get them there, it’s a very gratifying connection. We’ve heard many times through the years, ‘You’ve changed my life.’�”

“Our people know what’s going on in their marketplaces. They are the eyes, ears, and

sounding boards for our business owners. They build deep relationships with practices.”


FiNet Advisors becomes a family resource for clients

Mary Lee Widder–Financial Advisor, Michael Cowan–Branch Manager, Luis Cowan–Operations Manager, Jessica Ivers–Branch Administrator, David Crum–Financial Advisor, Bruce Wilson–Financial Advisor, Lynne Cross–Financial Advisor–The Cowan Group

With nearly 20 years of experience in the financial services industry, Michael Cowan is dedicated to helping individuals accomplish their financial goals plus so much more. Michael Cowan of The Cowan Group in Palm Beach Gardens, Florida, joined FiNet in April of 2009 from Smith Barney. Michael never had a plan to enter the industry, he was initially on a path to join a seminary to become a priest. After soul-searching, Michael decided that he wasn’t meant for that calling, and while still unsure of exactly what his calling was, he knew that he wanted to help people.

A fellow member of Michael’s church asked if he ever thought about being a stockbroker. He was hesitant as to how a job in the financial services industry would have an impact on other people’s lives in a positive way. “I wasn’t sure how investing people’s money would be impactful,” says Michael. “But he showed me how he had helped families in a unique way, so I joined his firm as a financial advisor.”

After an eight-year tenure as a partner with a very successful and established wealth advisor, Michael moved from one wirehouse to another and landed at Smith Barney. While navigating the volatility of the market from 2000 to 2008, he realized the need to work as a financial advisor in an independent, impartial manner. “If I was going to build a business, I wanted to build it independently,” explains Michael. “My clients were with me because of me, not just because of the logo on the financial statement.”

After researching several small broker/dealers, a recruiter referred Michael to Margo Vuicich, head of the Gulf Coast Region for Wells Fargo Advisors Financial Network. “Before meeting Margo, I had no idea that Wells Fargo had an independent platform,” says Michael. “Margo was instrumental in helping me make the transition to independence with FiNet.”

Michael and Margo make a talented team, working together to grow Michael’s business. “Margo has given me a lot of confidence. I can’t imagine going through the process of growing my business without Margo and FiNet.” FiNet has given Michael the opportunity to network around the country exchanging ideas and resources with other FiNet business owners. “He is always sharing his story and trying to help others in the industry,” says Margo. “He has been a leader on FiNet’s Licensee Advisory Board and is a true success story.”

FiNet has enabled Michael to recruit and expand his business, adding four new advisors to The Cowan Group.

FiNet provided Michael with an advocate and the support of tools and resources to grow; “FiNet has their own culture which is what makes them unique and exclusive. It’s a culture of sharing ideas, motivation, and entrepreneurial spirit.”

One way Michael has been able to expand his business since joining FiNet is by hosting more than 30 seminars each year between December and March. Michael’s office contains an education center that can hold up to 35 people. A variety of topics are covered in the seminars, including estate planning, dividend stock investing, and end-of-life planning. The seminars have served as an avenue to grow business as well as meet new families in the area, who receive invitations to attend through direct mail.

Michael has a unique approach to serving his clients. His office is a resource for the families they serve helping with many different needs from last minute travel planning, to finding nursing care, or even assistance in using technology. “Everyone says how the industry is evolving and changing and that it’s a dying culture,” says Michael. “People’s expectations are higher than they’ve ever been, so just providing investment advice isn’t enough. You truly must be your client’s advocate. Being independent with FiNet has allowed me to build my business to fulfil this need.”

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). The Cowan Group is a separate entity from WFAFN.


FAQsQ How long does it take to open up my own office?

A FiNet will work closely with you to set a target date for your opening. During the transition period, we’ll work with you to develop a plan, finalize arrangements for your office space and furnishings, prepare signage, stationery, and marketing materials, obtain and test your technology, complete all required registration documents, finalize your exit strategy, and prepare to transfer client accounts after your resignation. Depending upon the size of your practice, this time period may range from 30 to 90 days.

Q In addition to the Series 7 and Series 63, what securities registrations are required to open an independent office?

A An independent broker/dealer’s office is considered to be an Office of Supervisory Jurisdiction (OSJ), which requires daily supervision by an individual with Series 9 and 10 licenses or a Series 24 license. In addition, you will need any registrations applicable to the type of business you or any of your registered representatives transact on behalf of their clients—or example, Series 31 for managed futures and Series 65/66 for investment advisory business.

Q How do I set up my business?

A There are several ways to establish your new business. You may want to create a sole proprietorship, a limited liability company, an “S” Corporation, or a partnership. Our strategic system partners can guide you toward the right legal entity. You will decide on the location for your office and determine your employees’ salaries and benefits. We recommend that you work closely with your accountant and FiNet’s strategic partners to determine the most favorable setup for your business.

Q Do you offer any start-up capital?

A Start-up assistance is available through our various non-equity capitalization programs. Your regional director will give you details on these competitive, innovative loans and start-up financing options.

Q Am I taking on additional risk through business ownership?

A There is a misperception in the industry that going independent is risky. Although you will own your own business, Wells Fargo Advisors Financial Network (WFAFN) is still responsible for supervising your securities brokerage and advisory business. You will work closely with your regional supervisor to make sure your business is compliant with industry rules and regulations. In addition, you will participate in annual compliance audits. You will also be covered by an errors and omissions insurance policy.

Q How much time and paperwork will be involved in supervising my practice?

A It varies depending on the business mix of your practice. Significant resources have helped reduce the time required to provide proper supervision.

Q Can I add more financial advisors to my practice?

A Yes, with WFAFN approval.

Q How will I access client accounts, get information, and place orders?

A All account transactions and maintenance are executed through the Wells Fargo Advisors’ SmartStation® desktop solution.

Q How do I get paid, and how do I pay for business overhead expenses?

A FiNet distributes 1099 income to licensees and any registered financial advisors. All employee and overhead expenses are administered by the licensee through his or her choice of business entity.

Q How do you compare with other independent firms?

A We leverage the size and scale of one of the nation’s largest financial services firms. Our platform is designed for professional, successful advisors who want to own their own practices without giving up the products, services, resources, and support that both they and their clients are used to receiving. Our minimum for affiliation consideration is $300,000 in production.

Q What name will be on my business cards, stationery, and signage?

A This choice is yours. You decide whether to leverage the Wells Fargo Advisors Financial Network name and brand, create your own brand, or a combination of the two.

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Meet the Regional Heads

Ken Jubert, Northwest Kent Whitaker, Northeast Jason McLaughlin, Great Lakes

For more information about becoming an independent financial advisor with FiNet, contact us: call 1-866-485-5383 or visit wfafinet.com.

Joe Line, Midwest Ryan Thompson, PacSouth Margo Vuicich, Gulf Coast Tim Boostrom, Southeast

The experiences discussed by the financial advisors in this brochure may not be representative of the experiences of other financial advisors.

Wells Fargo recognizes and values the diversity of its employees, customers, and business partners. Wells Fargo is an Affirmative Action and Equal Opportunity Employer, Minority/Female/Disabled/Veteran/Gender Identity/Sexual Orientation.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC, a registered broker/dealer and nonbank affiliate of Wells Fargo and Company. WFAFN uses the trade name Wells Fargo Advisors. Any other referenced entity is a separate entity from WFAFN.

© 2018 Wells Fargo Advisors Financial Network, LLC. All rights reserved. CAR-1019-01185 IHA5690301


http://wfafinet.com

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