Margin
What accounts are typically margin eligible? Provide 3 examples.
Joint, Indv, Trusts
Name 3 LOI's that are IC generated (must be different categories)
Client Supervised, Client Directed Trades, Liquidation, Cash Raise, Tax Loss, CARRFs
What is expectation you should set with clients regarding distribution timelines?
3-5 business days
What is a bear market?
A fundamentally driven dop of approximately 20% or more over an extended period of time. The average bear market is 19 months with cumulative returns of -39%
Which TL has been at Fisher the longest?
Jordan!
What three departments do you need to communicate with in order to complete the margin process?
PEG, COP, CRT
Client has 50 shares of APPL in CSUP and wants to buy 50 more shares. What kind of LOI should we send?
A time-sensitive transition should be complete within what time from?
24 hours
Is consumer sentiment low or high right now?
Low!
What TLs were formally in operations?
Alex, Kennadie, Skye, Monte and Quinn
When do we recommend margin?
We dont.
When would we need a passive time horizon mandate LOI vs a signed?
If the client is mandating more than a 5 year difference
When does our forecast typically come out and why is it that time frame?
Mid to late January. KF/IPC typically likes to wait to see and understand what other pundits forecasts are.
What is happening in 2026 that could cause additional short-term volatility in the market?
How many TLs have partners that work at FI?
3!
What is the most common way margin is passively sold down?
Dividends & Interest
What kind of LOI do you need to sell specific tax lots?
Break FIFO LOI & LOI to sell
When can clients officially see their RMD for the year?
Their January statement.
It typically takes the custodian ~2-3 weeks to update RMD information.
What was the longest bear market gold went through?
25 years! GOLD LACKS LUSTER.
What TLs pioneered the original Shared Service Tests?
Skye & Kennadie
What is a margin call and why does it happen?
Margin calls happen when your borrowed funds in a margin account become too high relative to the value of your investments. This typically happens when the value of the investments falls below the minimum maintenance requirement; pullbacks, corrections & bear markets.
What client mandated LOI’s are covered by a passive re-reg letter?
All of them!
The letter states that we are going to “continue acting in accordance with written instructions you previously provided to us, including the instructions on how to bill our advisory fees. The Letter(s) of Agreement you signed will continue to govern our relationship.”
At the end of every year, the custodians provide us a cut-off date indicating that they will not guarantee processing distributions. What is that cut-off date?
It varies per custodian. The last day for guaranteed processing is typically the second week of December. Everything else is by a best-effort basis.
What was the most recent trade activity and why did we do it?
We reduced our holdings of corporate bonds and added to similar-maturity Treasury's. Credit spreads have narrowed to near-historic lows relative to Treasury's, so, corporate bonds are paying little premium over Treasurys.
How many total children do the TLs have?
10!