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Doing the Right Thing and Doing It the Right Way
A One Day Compliance and Suitability Workshop
As banks continue to broaden the scope of their activities and expand in markets which have traditionally been closed to them, there is increasing concern for both the traditional bank customer, and for the way in which the bank is viewed as its role changes. The way in which bank representatives conduct the sale of non-traditional products to the bank customer will do much to shape the bank’s role, in the financial services industry of the future.
Bank securities companies must prepare their representatives to demonstrate adequate compliance proactive as a part of sales. In the current environment, regulators are thoroughly scrutinizing the way in which securities products and services are sold in the bank environment.
Effective disclosure as well as separation of traditional and non-traditional product sales is the essence of effective compliance practice, which ensure suitability of the product or service for the customer. “Doing the Right Thing & Doing It the Right Way” provides definition, understanding, and application of good compliance practice in today’s bank environment.
Sample Program Outline:
iI. Case Study - Mr. & Mrs. Bank Customer
A. A referral is made.
B. A customer profile is taken.
C. A sale is made.
D. The market corrects substantially.
E. The customer lodges a complaint.
F. The issues:
1. Disclosure
2. Documentation
3. Consistency
4. Working with Compliance
II. Sales practices and the special responsibility of selling with a bank (This material is fully customized to represent the Bank’s approved compliance/AML policies, document, and forms and product list.)
A. Opening - Introduction and Greeting
1. Establishing rapport
2. Uncovering opportunities and needs for bank products and services
3. Positioning the value to the customer for providing information
B. Discovering Needs - The Confidential Investor Profile
1. Personal data - age, obligations
2. Assets - capital income, tax bracket
3. Goals
4. Experience
5. Risk orientation
a. Attitudes
b. Ability to withstand exposure or loss
C. Presentation - Benefits and features relate to customer objections
Example:
1. Fund objective
2. Historical performance
3. Yield and return
D. Handling Objections
1. Questions, concerns, doubts, and objections
2. Acknowledge, answer, confirm
3. An opportunity to re-tell the story
E. Closing
1. Asking for action
2. Completing the documentation
a. New Account Application
b. Mutual Fund Disclosure Form
c. Solicited or Unsolicited
d. Prompt Transmittal Of Application and Funds
F. Electronic or other backup documentation
1. Confirm checkpoints
a. Introduction with Disclosure
b. Information Obtained and Recorded
c. Prospectus and sales literature used in presentation
d. Questions and concerns addressed to client satisfaction
e. Close based on understanding
G. Case Studies
1. The vague customer
2. Dealing with two decision makers
3. The tough customer
4. The suddenly wealthy customer
5. The customer trying to catch up
6. The aggressive customer
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