Selecting an office of supervisory jurisdiction (OSJ) is one of the most important decisions you can make. Your allied OSJ will serve as your firm’s compliance and regulatory arm, responsible for monitoring the activities performed by all parties within your organization.
That’s why, when it comes to making this selection, there are important things to consider and questions to ask. To help ensure that you are choosing the right fit for your business, we have compiled six essential questions that every financial firm should ask any potential OSJ prior to making a final decision.
This article discusses the following questions:
- Do we share the same values and goals? What sort of training and education do you provide to advisors/firms?
- How are you compensated?
- What is your compliance process?
- What type of technology and infrastructure do you offer?
- Do you offer new advisors transitional services?
1. Alignment of Goals and Values
Before partnering with an OSJ, financial advisors should ensure that their business goals and values align with those of the OSJ. This includes assessing the OSJ’s commitment to growth, innovation, and best practices in client service.
Consider the overall culture and values of the OSJ. This includes their approach to client service, transparency, and ethical standards. A strong partnership will be based on shared values and a compatible culture, so it’s essential to ensure that the OSJ aligns with your own beliefs and practices. Having a strong partnership with your OSJ fosters better collaboration and support for your firm.
2. What Sort of Education and Training Do You Provide to Financial Advisors/Firms?
The OSJ should offer ongoing training and educational resources for its financial advisor base. Evaluate the quality and accessibility of these resources, as well as the likely service partner’s commitment to ongoing professional development.
A good match could also result in a deeper understanding of compliance regulations, learning about new products and investment strategies, and improving their overall professional development. By improving their overall professional development, financial advisors can enhance their credibility and reputation in the industry, ultimately leading to increased client satisfaction and retention.
3. How Are You Compensated?
Office of Supervisory Jurisdiction (OSJ) compensation is typically structured as a percentage of the gross dealer concessions generated by the financial advisors affiliated with the OSJ. This arrangement allows OSJs to earn revenue while providing essential supervision, compliance oversight, and support services to the financial advisors under their umbrella.
Financial advisors who move their back office to an OSJ can experience numerous benefits, including reduced operational and compliance burdens, increased efficiency, access to cutting-edge technology platforms, and a comprehensive suite of resources tailored to help them grow their practice.
At Evolution Financial Advisors, we believe in full transparency, so you will always know what you will be paid as well as what you are paying for. Transparency in an OSJ partnership is of the utmost importance.
By leveraging the expertise and infrastructure of an established OSJ, you can focus on cultivating client relationships and providing exceptional service, ultimately enhancing your overall profitability and success in the industry. You’ll need more than this over the long haul, however.
Ideally, your service partner should be as upfront and transparent as possible. It shouldn’t be difficult to understand how you’ll be compensated, what you’ll receive, and what you’ll be paying for.
4. What Is Your Compliance Process?
The Office of Supervisory Jurisdiction (OSJ) plays a crucial role in ensuring compliance and oversight within the financial services industry. Through meticulous monitoring and enforcement of regulatory standards, OSJs provide a robust framework that benefits independent financial advisors in multiple ways.
By facilitating the adherence to established rules and guidelines, they help advisors maintain their professional integrity and credibility in the eyes of clients and regulators. OSJs help financial planners with both their preparation and follow-up, ensuring they remain compliant with ever-evolving regulations. Additionally, OSJs offer ongoing support and training, enabling financial advisors to stay informed about industry trends, best practices, and regulatory updates.
This comprehensive compliance and oversight process not only safeguards the interests of clients and advisors alike but also fosters a more transparent and trustworthy financial services environment.
Unsure How To Find the Best OSJ for Your Firm? We’ve Got a Guide To Selection Here
5. What Type of Technology and Infrastructure Do You Offer?
An Office of Supervisory Jurisdiction (OSJ) can offer financial advisors a significant advantage in terms of access to cutting-edge technology platforms and infrastructure. These advanced tools and technology platforms can streamline operations, facilitate communication, and enhance overall efficiency.
By partnering with an OSJ, advisors can gain access to sophisticated platforms for portfolio management, financial planning, risk assessment, and compliance monitoring. This potentially allows you to make better-informed decisions, provide more comprehensive services to your clients, and stay ahead of your competition in the rapidly evolving financial services landscape.
Additionally, the robust infrastructure provided by a service partner can alleviate the burden of managing complex IT systems for independent financial advisors. OSJs provide access to teams that help maintain and upgrade technology solutions, ensuring that advisors have continuous access to the latest tools and features.
This means that you can focus on what you do best—providing high-quality financial advice to your clients—without having to worry about technology management or the costs associated with implementing and maintaining these systems on your own.
In this way, an OSJ provides valuable support and resources that, as an independent advisor, you may struggle to access. This, ultimately, can promote a higher level of service and client satisfaction.
6. Do You Offer New Advisors Transitional Services?
If you are considering breaking away from your current employer and transitioning to become an independent financial professional, there are many challenges and hurdles that will need to be addressed during this process. When interviewing OSJs, it’s important to understand what types of transitional and onboarding services they provide.
- Better OSJs help streamline the process by offering access to cutting-edge technology platforms, trading and investment tools, research, and CRM systems.
- Quality service partners also facilitate ongoing training, coaching, and mentoring to help advisors develop their skills and grow their businesses. This comprehensive support enables you and your team to focus on building strong client relationships while the OSJ handles the time-consuming complexities of running an independent practice.
- A good OSJ will provide a customized transition experience, as well. It’s vital that things go as smoothly as possible for you.
In conclusion, finding the right Office of Supervisory Jurisdiction is a critical aspect of building a successful financial advisory practice. By carefully considering these questions, you should find an OSJ partner that will help you thrive, maintain compliance, and deliver exceptional service to your clients.
Contact us to learn what it’s like to partner with an OSJ and join a growing family.
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