Why Independent Financial Professionals Are Partnering with an OSJ
As the financial service industry continues to evolve, independent financial professionals must change with it or risk being left behind by their competitors. One tactic many successful independent financial professionals use is aligning their businesses with an Office of Supervisory Jurisdiction (OSJ).
This action is based on independent financial professionals facing numerous business challenges and opportunities as they strive to maintain and grow their practices. Independent-minded financial professionals must consider numerous factors to thrive in this dynamic environment, including regulatory compliance, access to operational resources, training and development, networking opportunities, and quality of life issues.
These factors are all critical pillars contributing to independent financial professionals’ overall success, satisfaction, and longevity in the industry.
OSJs are known for their operational knowledge and support, compliance oversight, and wealth of experience, which can help independent financial professionals flourish in an increasingly competitive marketplace.
Whether you’re a seasoned professional seeking enhanced growth or a newcomer to the industry, understanding the role and advantages of an OSJ can prove invaluable to your future success.
This guide explores seven important pillars that are the foundation of a successful relationship between an OSJ and the independent financial professionals who depend on it for specialized knowledge and services.
- OSJ Services
- Compliance Services
- OSJ Training and Consulting Services
- Operational Support
- Transition Services
- Networking Opportunities
- Quality of Life Issues
Securities offered through Securities America, Inc. Member FINRA/SIPC. Advisory services offered through Securities America Advisors. Evolution Financial Advisors is not affiliated with the Securities America companies. Securities America does not offer tax or legal services
An Office of Supervisory Jurisdiction (OSJ) provides various regulatory compliance services for independent financial professionals. While the specific services can vary based on the OSJ, here are the most common regulatory compliance services they provide financial professionals:
- Compliance Training and Education
- Compliance Review of Advertising and Marketing Materials
- Policy and Procedure Development
- Marketing and Sales Support
- Access to Tech Support
- Risk Management
- Networking Opportunities
- Due Diligence
- Transition Assistance
Why Consider Evolution Financial Advisors as Your OSJ: Our inception of Evolution Financial Advisors was fueled by a single, clear objective: to build a superior platform for independent-minded financial professionals. Our team was formed around five guiding principles:
- White Glove Service
- Best-in-Class Practices
These five guiding principles serve as our compass, shaping our choices as we strive to assist financial professionals in realizing their potential. Each of these principles yields significant advantages for the financial professionals relying on Evolution to support their onboarding and servicing of new clients while maintaining service excellence for current clients.
Compliance is fundamental for financial professionals who provide investment and insurance advice, services, and products for fees and commissions. An OSJ is a critical partner in providing the ongoing compliance support independent financial professionals depend on to stay in compliance with industry regulations.
OSJs also keep financial professionals updated with the latest rules and regulations imposed by regulatory bodies such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Compliance-related services are a core function of an OSJ that are provided to independent financial professionals in several different ways:
- Review and Approval of Business Practices: The OSJ reviews and approves various activities of independent financial professionals, such as their sales practices and procedures, to ensure they meet regulatory requirements.
- Compliance Training: The OSJ trains independent financial professionals to update them on the latest rules, regulations, and industry practices. This can involve ongoing training guides, seminars, and webinars.
- Advice on Compliance Matters: The OSJ offers advice and guidance on regulatory and compliance matters. This can involve assisting with interpreting regulations, providing counsel on handling regulatory inquiries, or helping implement necessary compliance procedures.
- Monitoring Advertising and Communications: The OSJ will review advertising, marketing materials, and communications to ensure they comply with current FINRA, SEC, and State requirements.
- Policies and Procedures: The OSJ helps implement and update compliance policies and procedures.
Why Consider Evolution Financial Advisors as Your OSJ: If you're contemplating starting your independent practice or are an experienced independent professional seeking ways to improve your compliance support services, the EFA team is at your disposal. We are prepared to assist you in delivering superior compliance support so you can focus on what you do best….servicing current clients and adding new clients.
OSJs provide various training and consulting services to independent financial professionals. These services help financial professionals and agents meet regulatory requirements while enhancing their skills and capabilities.
Following are a few examples of the types of training and consulting services that OSJs can provide to financial professionals:
- Compliance: OSJs may provide extra help and offer more in-depth information for questions where financial professionals may need more help. They can also help financial professionals build in-office systems to make sure their offices are compliant.
- Product Knowledge and Sales Training: OSJs may provide training on investments, insurance, retirement plans, and other financial products. They may also offer sales training to help professionals improve their marketing strategies and skills.
- Ethics Training: Ethical behavior is crucial in the financial industry. OSJs typically offer training in ethical decision-making, helping professionals understand the impact of their actions and ways to maintain high standards of conduct.
- Risk Management Training: OSJs often guide the assessment and management of risks associated with the different types of financial products. This training can also cover enterprise risk management and how to mitigate operational risks within a financial practice.
- Continuing Education: Many OSJs provide opportunities for continuing education, either through in-house training programs or by coordinating with third-party education providers. This helps financial professionals keep their licenses, designations, and certifications active while staying updated on industry trends and best practices.
- Business Development: This service involves training in marketing strategies, new client acquisition and retention, referral marketing, and other business expansion tactics. OSJs can also guide strategic planning and practice management.
- Coaching and Consulting: More hands-on than traditional training, coaching and consulting provide targeted ongoing support and development.
Why Consider Evolution Financial Advisors as Your OSJ: Whether you're just starting your professional practice or a seasoned industry professional, our team at EFA can provide consulting services tailored to help you make objective, sound business decisions and help you formulate strategic action plans for your firm. Our coaching services are built upon proven best practices backed by years of professional experience.
You already know the financial industry is heavily regulated, and staying compliant is a significant challenge for independent financial professionals. That is where experienced OSJs come into play. They help financial professionals navigate this regulatory environment, offering guidance on everything from required paperwork to understanding the latest SEC or FINRA regulations.
Following are some back-office support services that OSJs can provide to independent financial professionals:
- Virtual Assistant Programs: Rather than hiring a staff member to handle routine back-office support tasks, some OSJs offer a virtual assistant program that financial professionals can leverage.
- Marketing and Branding: Some OSJs offer marketing and branding support, helping independent advisors with website development, social media strategies, content creation, and various complimentary offers.
- Problem Resolution: Often, an OSJ can provide troubleshooting and problem resolution services. This can be very helpful if you are a solo entrepreneur with limited resources.
Why Consider Evolution Financial Advisors as Your OSJ? Evolution delivers diverse back-office services, enhancing the operations of independent financial professionals throughout Western New York State and the U.S. As a comprehensive OSJ, we enable you to choose the specific services to bolster your practice's growth.
When a financial professional decides to become independent, they often face several challenges during the transition phase, from regulatory compliance to operational setup. A smooth transition process is critically important when independent financial professionals are moving their back-office services to the OSJ. Here are some of the reasons why:
Minimizing Downtime: Because you need consistent access to client data and market information, the transition to an OSJ is critical. You want to partner with an OSJ that will limit any potential downtime so your clients have a seamless transition. Moving back-office services can involve shifting large amounts of data and adjusting to new systems for trade processing, settlements, and other functions. An efficient transition process can help ensure these important operations continue to function smoothly.
Data Security: A changeover in systems can pose a risk to data security if not handled properly. Any data loss or breach could lead to regulatory penalties and damage your reputation. Clients need to feel their accounts and investments are secure during the transition. Any perception of instability could lead them to consider taking their business elsewhere. A smooth transition helps preserve trust and maintain these important relationships.
Regulatory Compliance: The transition process must ensure all records, reports, and other necessary documentation are correctly and promptly transferred to avoid regulatory compliance issues.
Client Service Continuity: Clients should be able to receive the same level of service without interruption during the transition. A smooth transition process ensures that clients receive timely communication, order execution, and account management.
Staff Training: A change in back-office services often involves using new systems and protocols. A smooth transition process should include training for you and your team staff to ensure they can use the new systems effectively.
Cost Efficiency: Poorly managed transitions can result in cost overruns due to delays, rework, or addressing unexpected problems. A well-planned and executed transition can help keep costs under control.
Why Consider Evolution Financial Advisors as Your OSJ? At Evolution, we take on the heavy lifting of transitioning toward independence so you can focus on what you do best….nurturing clients and building new relationships.
“Alone we can do so little; together we can do so much.”
The financial industry is often characterized by high-stakes decisions, complex terminology, and a rapidly changing landscape. The pressure can be significant for independent financial professionals, and the experience can make them feel isolated. However, when these professionals partner with the right OSJ, the dynamics change, leading to more growth opportunities, camaraderie, and less loneliness.
An OSJ is an entity affiliated with a broker-dealer firm responsible for supervising associated persons in their business activities. When the OSJ represents a network of financial professionals, it enables them to collaborate, share knowledge, and foster a supportive professional environment.
The key benefits of networking through an OSJ include the following:
- Succession Planning: If you are considering either retirement or an exit from your business at some point in time, an OSJ can provide assistance with succession planning. This might include helping you find a suitable successor within the network or providing resources to help facilitate the transition.
- Continuity Planning: OSJs can also assist in developing a continuity plan for your practice. This can reassure your clients, as well as your team, knowing that a plan exists, should something happen to you.
- Business Development: Networking within an OSJ can lead to referrals between advisors, increasing business opportunities for all involved. This can make the independent role less daunting and more lucrative.
- Knowledge Sharing: By encouraging networking, an OSJ can foster an environment where advisors can share knowledge and insights about the financial markets. This sharing can lead to better decision-making and more informed financial planning for clients.
- Collaborative Opportunities: Networking can lead to collaborative opportunities. For example, two advisors might team up to work on a project or account that would be difficult to handle individually. This partnership can provide a shared sense of purpose, camaraderie, and succession and reduce feelings of isolation.
- Coaching and Consulting Support: An OSJ that promotes networking can provide newer advisors access to experienced mentors who can offer guidance, feedback, and support. While you may be a solopreneur, having a coach and mentor can make you feel more included and part of an enterprise team.
Here are some ways OSJs sponsor networking between their advisors:
- Regular Meetings/Conferences
- Training and Development Programs
- Social Events
- Online Networking Platforms
Why Consider Evolution Financial Advisors as Your OSJ? At EFA, our core conviction is that mutual collaboration is crucial to our financial professionals' remarkable success. The synergy of collective thought often yields superior results from an individual perspective. The power of our collective teamwork can significantly influence the outcomes you and your team achieve. Remember- going independent doesn’t mean you have to go it alone!
When an independent financial professional partners with the right Office of Supervisory Jurisdiction (OSJ), several benefits can be realized that enhance not only professional life but also impact personal life and overall quality of life. You want to partner with an OSJ that aligns with your personal and professional goals, values your independence, and provides the level of support and resources you need to accelerate the growth of your practice.
Here are a few ways that an OSJ can significantly improve the personal quality of life for an independent financial professional:
- Reduced Administrative Burden: This can free up more time for financial advisors to focus on their core responsibilities, like client interaction and portfolio management.
- Increased Compliance Confidence: This can give an independent financial professional peace of mind, knowing they're always compliant.
- Access to Resources: This can include software, market research, marketing materials, technology platforms, and training opportunities, all of which can make their work more efficient and effective.
- Network and Community: This can lead to opportunities for collaboration, shared learning, and even referrals.
- Business Development Support: This can help independent financial professionals grow their businesses more quickly than they could.
- Succession Planning: This can provide a significant sense of security and peace of mind for professionals and their clients.
- Flexibility: This balance can improve quality of life, as professionals can structure their business in a way that suits them the best and spend quality time with family and friends.
Why Consider Evolution Financial Advisors as Your OSJ? We've gathered a group of seasoned experts from the financial sector, each with a deep-seated enthusiasm for offering OSJ services to self-sufficient financial professionals. As one of the top-ranking OSJs in partnership with Securities America, our team is purposefully constructed to be your reliable support organization. Our team of professionals is proud of our prompt replies and unsurpassed service quality. Connect with our team today to learn more about our OSJ services for independent financial professionals and agents.