Please review prior to submitting any new business.

 


 

Broker/Dealer Changes

The following paperwork must be completed and signed for all Broker/Dealer Changes where the account is held directly with the fund/insurance company:

  • Change of Broker/Dealer or Representative Form (one form is required per client name per account type).  The HBWS Change of Broker/Dealer or Representative Form is accepted by all companies where we have a sellling agreement therefore the fund/insurance company change of dealer form is not necessary.
  • Change of Broker/Dealer or Rep: Client Information Form
  • Most recent account statement (within 45 days is preferred)


Additional documentation may be required based on the Account Registration Type:

Trust Account - a copy of the trust is required upon submission
Corporation, Simple IRA, etc. - the articles of incorporation, corporate charter, corporate resolution, etc. is required upon submission.  This document must identify the authorized signer(s) for the entity.

Important Information:

  • Privacy Policy must be given to the client for his/her files.
  • Copy of documents must be provided to the client for their records.
  • Rep should retain evidence that their client received copies of all documents.
  • Do not submit trades (new contributions, subsequent trades, fund exchange requests, etc.) with the B/D Change paperwork. Commissions for these contributions are likely to be paid to the existing broker/dealer prior to the change to HBWS and the commission may be lost. Once the BD change request is approved, the home office staff will send it to the fund/insurance company for processing. The rep is to monitor the account via DST Vision or the fund/insurance company website and once the account appears in the rep's name with HBWS listed as the BD, the subsequent trade may be submitted to the trade desk for review and approval.
  • Reps should not send BD Change documents to the fund company. The home office will send the BD change documents, after approval, to the applicable fund/insurance company (please note this procedure differs from the trade/subsequent trade procedures where the rep mails or processes the transaction upon approval).

Broker/Dealer Changes for Mutual Funds held in Brokerage Accounts (aka held in "Street Name")

This procedure should be followed for the transfer of mutual funds held in street name. Mutual Funds held in street name are funds in client accounts held in other brokerage/proprietary accounts and not directly with the mutual fund company. Due to this characteristic, a fund application must be completed to open a "shell account" with the fund company directly. The "shell account" will allow the releasing company to transfer the shares of mutual funds in-kind to the shell account at the fund company. The following paperwork must be completed and signed for all street name B/D Changes:

  • Client Information Form (CIF)
  • Mutual Fund Disclosure form (dated 01/01/2016)
  • Fund Company Account Application required to establish a new shell account with the receiving fund company. **The client must have an open account at the fund company for a transfer-in-kind to take place.  See above for more information**
  • Transfer Form for IRA accounts or letter of instruction for non-qualified accounts (transfer form/LOI may require signature guarantee, depending on the company)
  • Full copy (all pages) of the most recent existing account statement (within 45 days is preferred)

*Upon approval, the representative is responsible for mailing the necessary documents to the fund company for processing.  The documents needed to move the funds are similar to a new account therefore the representative is responsible for mailing all necessary documents to the fund company.   See the Paperwork Submission Procedures below*


Important Information:

  • The Privacy Policy must be provided to the customer upfront for his/her files.
  • A copy of all documents must be provided to the client.
  • Rep should retain evidence that the client received copies of all documents.
  • New contributions should NOT be sent with this paperwork. Commissions for these contributions are likely to be paid to the existing broker/dealer prior to the change to HBWS and the commission, if any, may be lost.

Fixed Annuities

HBWS does offer approved fixed annuity products (see products tab for the companies and products available).
Although fixed annuities are not considered securities products, you must be a registered representative with HBWS
to sell these products since they are only offered through a Broker/Dealer channel. As a result, the application is reviewed using the same procedures for securities products and the compensation is paid through the Broker/Dealer and is based on the HBWS commission schedule.

Procedures for Selling Fixed Annuities through HBWS 
Fixed annuities offered through the Broker/Dealer require different procedures from those offered through HBW Insurance & Financial Services, Inc. DBA HBW Partners.  Fixed annuities sold through the Broker/Dealer require the same suitability review and approval process as securities sold through the Broker/Dealer. The following documents must be provided for the sale of these fixed products:

  • Client Information Form (CIF)
  • Fixed/Indexed Annuity Disclosure Form
  • Employer Sponsored Retirement Plan Suitability Questionnaire (ESRPSQ) - required when funds are being moved from an employer sponsored retirement plan (401(k), 401(b), PSP, pension, etc.) to an IRA.
  • All relevant carrier paperwork including the application, carrier disclosure, suitability form, transfer documents or check copy (if applicable). It is recommended that you contact the carrier to ensure you have all required documents.
  • Full copy (all pages) of the most recent account statement (within 45 days is preferred) if the sale involves a transfer/rollover/replacement etc.
  • If a check was collected:  make a copy of the check and note the time/date received on the copy.  Submit a copy of the check with the trade for review.

Important Information:

  • The Privacy Policy must be provided to the customer upfront for his/her files.
  • A copy of all documents must be provided to the client.
  • Rep should retain evidence that the client received copies of all documents.

 

Indexed Annuity Trades running through the Broker/Dealer

HBWS offers indexed annuity products (also known as fixed-indexed annuities) that run through the Broker/Dealer.  Although indexed annuities are not considered securities products, you must be a registered representative with HBWS to sell these products with our approved carriers since they are only offered through the Broker/Dealer channel.  As a result, the application is reviewed using the same procedures for securities products and the compensation is paid through the Broker/Dealer and is based on the HBWS commission schedule.

Procedures for Selling Indexed Annuities through HBWS
Indexed annuities offered through the Broker/Dealer require different procedures from those offered through HBW Insurance & Financial Services, Inc. DBA HBW Partners.  Indexed annuities sold through the Broker/Dealer require the same suitability review and approval process as securities sold through the Broker/Dealer. The following documents must be provided for the sale of these fixed products:

  • Client Information Form (CIF)
  • Fixed/Indexed Annuity Disclosure Form
  • Employer Sponsored Retirement Plan Suitability Questionnaire (ESRPSQ) - required when funds are being moved from an employer sponsored retirement plan (401(k), 401(b), PSP, pension, etc.) to an IRA.
  • All relevant carrier paperwork including the application, carrier disclosure, suitability form, transfer documents or check copy (if applicable). It is recommended that you contact the carrier to ensure you have all required documents.
  • Full copy (all pages) of the most recent account statement (within 45 days is preferred) if the sale involves a transfer/rollover/replacement etc.
  • If a check was collected:  make a copy of the check and note the time/date received on the copy.  Submit a copy of the check with the trade for review.


Important Information:

  • The Privacy Policy must be provided to the customer upfront for his/her files.
  • A copy of all documents must be provided to the client.
  • Rep should retain evidence that the client received copies of all documents.

Indexed Annuity Trades running through HBW Partners - Direct or via CreativeOne
HBW Insurance & Financial Services, Inc. DBA HBW Partners offers indexed annuity products through either a direct contract with the carrier (Direct) or via CreativeOne.  Representatives registered with HBWS are permitted to sell these products through the HBW Partners channel however there are certain restrictions. FINRA requires HBWS to review and supervise all indexed annuity trades sold by it's registered representatives.  As a result, the following restrictions apply:
  • Representatives are limited to the approved indexed annuity carriers/products offered via HBW Partners
  • Representatives are not permitted to sell ANY annuity products outside the HBW Partners or HBWS channels.  Outside Business Activity (OBA) requests to sell these products outside HBWS or HBW Partners are not permitted due to supervision needs.

Procedures for Selling Indexed Annuities through HBW Partners

The representative is to submit the business directly to the carrier (for Direct Access carriers) or to CreativeOne for processing.  The list of approved carriers is available under the products tab. 

The representative must then send a copy of the documents to trades@hbwsecurities.com or via fax to (805)210-3212 for review. This must be done directly after submitting the business directly to the carrier or CreativeOne.  This means that you are not required to obtain pre-approval to send the application to the Direct Carrier or CreativeOne for processing.  This only applies to indexed annuities sold via HBW Partners.  All annuities sold via the Broker/Dealer channel require pre-approval.  Please do not confuse the two. 

The following documents must be provided for the sale of these indexed products:
  • HBW Partners Customer Suitability Analysis Worksheet (CSAW) - it is not required to send this form the carrier.  This is an internal form that is provided to HBWS for it's review and to be kept in the client file for future reference. 
  • Carrier application and any suitability forms they include/require
  • Any additional forms or letters of instruction the carrier may require, including any transfer and replacement forms
  • If a check was collected:  make a copy of the check and submit the copy with the documents for review.

Upon review by HBWS, you will either receive an email stating the application has been reviewed and approved or you'll receive an email stating there are questions.  Provide the reviewing principal with the necessary information as quickly as possible and an approval will be sent for your files. 

Important Information: 
CreativeOne contact information is available via the HBW Partners website along with the Direct Access Carrier information.  You can locate the HBW Partners CSAW on the HBW Partners website or under the forms tab of this website.

Mutual Fund Trades

The following paperwork must be completed and signed for all new trades:
  • Client Information Form (CIF)
  • Mutual Fund Disclosure form
  • Employer Sponsored Retirement Plan Suitability Questionnaire (ESRPSQ) - required when funds are being moved from an employer sponsored retirement plan (401(k), 401(b), PSP, pension, etc.) to an IRA.
  • New Mutual Fund Account Application
  • Check or Transfer Form (If a check was collected:  make a copy of the check and note the time/date received on the copy.  Submit a copy of the check with the trade for review.)
  • Full copy (all pages) of the most recent account statement (within 45 days is preferred) if the trade involves a transfer, rollover, replacement, exchange, etc.

Other Information:
Letters of explanation or Letters of Intent - a letter of explanation may be requested by HBWS or the company to provide detailed instructions when needed (e.g. in cases where a transfer form is not required however the company needs more information to process a request).

Additional documentation may be required based on the Account Registration Type:
  • Trust Account – a copy of the trust is required
  • Corporation, Simple IRA, etc. – the articles of incorporation, corporate charter, corporate resolution, etc. is required.  This document must identify the authorized signer(s) for the entity.

 

Important Information:
  • The Privacy Policy must be provided to the customer upfront for his/her files.
  • A copy of all documents must be provided to the client.
  • If mutual fund hypotheticals are used, a copy must be provided to the client.
  • Rep must retain evidence that the client received copies of all documents.


529 Plan Trades

The following paperwork should be completed and signed for all new trades:

  • Client Information Form (CIF)
    • Minor or beneficiary of the educational/custodial account must be listed in Section D
    • Include DOB, SSN, address & phone info, and citizenship for the minor. Document employment and photo ID information if available
    • The minor does not sign any forms. 
  • 529 Plan Disclosure form
  • 529 Plan Account Application
  • Check or Transfer Form (if a check was collected:  make a copy of the check and note the time/date received on the copy.  Submit a copy of the check with the trade for review.)
  • Full copy (all pages) of the most recent account statement (within 45 days is preferred) if the trade involves a transfer, rollover, replacement, exchange, etc.

Other Information:
Provide copies of any additional information such as letters of explanation or letters of intent. 

 

Important Information:
  • The Privacy Policy must be given to the customer for his/her files.
  • A copy of all documents must be provided to the client.
  • If mutual fund hypotheticals are used, a copy must be provided to the client.
  • The Rep must evidence that the client received copies of all documents.


Variable Annuity Trades

The following paperwork must be completed and signed for all new trades:

  • Client Information Form (CIF)
  • Variable Annuity Disclosure Form
  • Variable Annuity Account Application
  • Check or VA Transfer Form (if a check was collected:  make a copy of the check and note the time/date received on the copy.  Submit a copy of the check with the trade for review.)
  • Full copy (all pages) of the most recent account statement (within 45 days is preferred) if the trade involves a transfer, rollover, replacement, exchange, etc.


Other Information:
Letters of explanation or Letters of Intent - a letter of explanation may be requested by HBWS or the company to provide detailed instructions when needed (e.g. in cases where a transfer form is not required however the company needs more information to process a request).

Additional Forms may be required based on the Account Registration Type:

  • Trust Account – a copy of the trust is required.
  • Corporation, Simple IRA, etc. – the articles of incorporation, corporate charter, corporate resolution, etc. is required.  This document must identify the authorized signer(s) for the entity.

 

Important Information:
  • Privacy Policy must be given to the customer for his/her files.
  • A copy of all documents must be provided to the client.
  • Rep must retain evidence that the client received copies of all documents.


Variable Universal Life Trades

The following paperwork must be completed and signed for all new trades:

  • Client Information Form (CIF)
  • VUL Disclosure Form
  • VUL Account Application
  • Check or Transfer Form (if a check was collected:  make a copy of the check and note the time/date received on the copy.  Submit a copy of the check with the trade for review.)
  • Full copy (all pages) of the most recent account statement (within 45 days is preferred) if the trade involves a transfer, rollover, replacement, exchange, etc.

Other Information:
Letters of explanation or Letters of Intent – a letter of explanation may be requested by HBWS or the company to provide detailed instructions when needed (ex. in cases where a transfer form is not required however the company needs more information to process a request).

Additional Forms may be required based on the Account Registration Type:
  • Trust Account – a copy of the trust is required.
  • Corporation, Simple IRA, etc. – the articles of incorporation, corporate charter, corporate resolution, etc. is required.  This document must identify the authorized signer(s) for the entity.

 

Important Information:
  • Privacy Policy must be given to the customer for his/her files.
  • A copy of all documents must be provided to the client.
  • Rep must retain evidence that the client received copies of all documents.


Subsequent Trade or Transfer (all types)

Subsequent trades are trades that take place within a clients account after it is open.  All subsequent trades require pre-approval prior to being processed at the fund/insurance company.  The following paperwork must be completed and signed for all subsequent trades:

  • Subsequent Trade Slip*
  • Check or transfer paperwork (if a check was collected:  make a copy of the check and note the time/date received on the copy.  Submit a copy of the check with the trade for review.)
  • Applicable Disclosure Form (required if the subsequent trade involves transfer, rollover, replacement, exchange between accounts, etc.)
  • Employer Sponsored Retirement Plan Suitability Questionnaire (ESRPSQ) - required when funds are being moved from an employer sponsored retirement plan (401(k), 401(b), PSP, pension, etc.) to an IRA.
  • Full copy (all pages) of the most recent account statement (within 45 days is preferred) if the subsequent trade involves a transfer, rollover, replacement, exchange, etc.

 
Additional forms or documentation that may be required:

  • Any additional information such as letters of explanation or fund allocation instructions.
  • Client Information Form – only required if clients information has changed since the original form was completed.  This can include changes to their address, identification, employment or financial information, etc.  Reps should verify that their client information is still current during each client meetings, but no less than every 3 years.

 

* A subsequent trade slip must be completed any time a rep assists a client with a transaction in an existing account. This includes buys, sells, transfers, rollovers, mutual fund exchanges, changes to bank or PAC information, changes to account registration, etc.
If you are placing a client into a fund  that does not match the current investment objective and/or risk tolerance on file, information must be submitted to document the changes.  A signed, updated CIF, a signed letter or email from the client which states the new objective and risk tolerance will be required to update our records and approve the transaction.

Subsequent trades must be submitted to the Trade Desk and approval must be received before the trade may be executed with the fund/insurance company.  If the request is urgent, please call the trade desk to discuss the situation and guidance will be provided.

 

Trade Submission Procedures

  1. Email trade documents to trades@hbwsecurities.com from the hbwsecurities.com email platform (ensures encryption and protection of sensitive client information) or fax paperwork to (805) 210-3212. If sent via email, the email must be generated from the Rep's hbwsecurities.com email address. Do not send trades or any securities related items from an outside email address to the trade desk or home office staff. Do not forward trades or securities related items to/from an outside email address at any time.
  2. Trades will be reviewed and the rep will receive a detailed email from the Trade Principal outlining the items needed. The rep should respond to the inquiry as soon as possible, especially if the trade includes a check.  
  3. Trade approval is typically provided same day however it may be up to 48 hours after submission. The Trade Principal will email the rep via the hbwsecurities.com email platform if questions arise or additional documents are needed.
  4. Reps must ensure that approval has been provided prior to mailing the documents to the applicable fund/insurance company. Reps are not required to mail the HBWS internal forms (Client Information Form, Disclosure Form, ESRPSQ, etc.) to the fund/insurance company. All fund/insurance company related forms (applications, suitability forms, transfer forms/checks, etc.) should be mailed and a copy retained at the branch office.
  5. After mailing, faxing, or otherwise delivering the trade to the fund/insurance company, the rep must send the processing details to the Trade Desk for the In-House Blotter.  Reps must be timely with this information and provide it to the Trade Desk as soon as possible after mailing/processing the trade.  See the Blotter Processing Details for more information. 
  6. All client paperwork must be maintained in a registered branch location according to the firms books and records rules. No paperwork should be kept at a non-registered location or home office unless the home office is the registered location.  Files stored electronically must be done so via an HBWS approved  storage vendor such as Cirtix Sharefile or Redtail. 
  7. The firm and reps are prohibited from holding client checks beyond 24 business hours unless permission is granted by the Trade Principal reviewing the trade. See the Written Supervisory Procedures (WSPs) for this procedure.

 

Mailing Suggestions
We strongly encourage representatives to use a courier service that includes a tracking number (U.S. 2nd Day Priority Mail, FedEx, UPS or DHL), when mailing items containing a client check over $5,000.

These procedures are subject to change at any time and representatives will be notified in advance of any impending changes by email.