RR TRAINING
Information to Retail Client, Securities Firm Management, Registered Representative Training and Compensation Practices were issued on April 10, 1995 by a committee established by Securities and Exchange Commission Chairman Arthur Levitt, Jr. The panel studied how management practices, including compensation, affect client-broker relationships. Daniel Tully, Chairman of Merrill Lynch & Co., served as the committee's chairman. Other members were: Warren Buffett, Chairman of Berkshire-Hathaway, Inc.; Samuel Hayes, a Professor at the Harvard Business School; Raymond A. Mason, Chairman of Legg Mason, Inc. and former SIA Chairman; and, Thomas O'Hara, President of the National Association of Investors Corp.
- Continuing education for RRs, which is now mandatory, should be encouraged.
- Education and training of registered personnel that improve the quality of advice to clients should be promoted.
- The initial training for RRs should be expanded beyond that which is currently required to prepare for the Series 7 broker licensing examination.
- New RRs should continue to be supervised as they develop.
- New RRs should be provided with a mentor.
For more information on Best Practices, please contact Don Kittell.
