National Issued MLCDs for B/Ds & RIAs
Broad Access to Multiple Issuers and Customized Product Capabilities
Bank B/Ds, Independent B/Ds, and RIAs engage CD Funding to provide a menu of structured investment products to meet the full spectrum of investor needs including retail, high net worth and institutional investments. Our services can be utilized either as your exclusive provider of MLCDs or as a part of your overall distribution strategy. While most providers distribute products from 1-2 issuers, CD Funding has access to nearly all national issuers, including some of their proprietary client banks.
Additionally, CD Funding can work with your organization to custom design products that fit the preferences and needs of your client base. We understand there is not a one size fits all for each investor based on their tolerance for risk, financial objectives, and market view. This is available for both recurring monthly Market-Linked CD offerings as well as for one-time customized solutions for institutions and high net worth individuals.
CD Funding's comprehensive program provides all product, operations, compliance and training/education support tools needed to make offering structured products a simplified process for your broker/dealer.
Structure Due Diligence
When analyzing products, CD Funding utilizes the same process and approach that is performed when designing a proprietary structure for one of its bank clients. This includes hypothetical back-testing, underlying volatility and correlation analysis, and stock basket comparisons. While past performance is not indicative of future results, it is helpful to know.
Product Filtering Process
At CD Funding we pride ourselves on our ability to quickly filter through and analyze the many Market-Linked CDs that become available each month. All products are fully analyzed, vetted and then reviewed with your management to determine what is most appropriate based on current market conditions and your institution. One of the common complaints we hear from broker/dealer program managers is that there is just too much product to choose from each month leaving their financial advisors to sift through a myriad of structures to find those most suitable for their clients. Our program makes this easier as we partner with your institution to help implement this important product filtering function.
Issuer Due Diligence
CD Funding performs numerous reviews of due diligence with structured-product issuing banks. Some elements we review in seeking high quality issuance standards include:
- Credit Quality
- Operational Effectiveness
- Capabilities with structured product transactions
- Options/Overall pricing strategies
The result of CD Funding's product filtering process is a customized focus list fully vetted to match clients' predetermined parameters. The focus list provides extensive product information with links to legal documents, and is distributed on a monthly basis.
The focus list includes a summary page to help quickly identify and compare structures, and is followed by detailed pages for each structure. Each detailed page provides key product characteristics as well as changes from the previous month for each offering, which significantly reduces financial advisors' time to review the various monthly offerings.
|Product Performance Reporting
Another core differentiator for CD Funding is that we support our clients from start to finish. We can offer support over the life of each product by supplying our clients with monthly product performance reporting for the life of each instrument, regardless of whether the issuer supports the reporting or not. As financial advisors continue selling the products each month, it is important that they have a reliable source of information to go to for answering client questions about their product's performance.
Sales Management Reporting
As part of CD Funding's Market-Linked CD program, we can provide monthly reporting of volume with penetration by region, product, and advisor. This is a valuable management tool that can help identify additional training/education needs.
Our dedicated team of Regional Relationship Managers average 25+ years of experience in the Financial Services industry. We provide extensive product training and education to ensure an organization-wide understanding of MLCDs. Our internal support team and dedicated sales support line are available for your convenience to ensure you have access to live support when you need it.
Our team of professionals has undergone extensive continuing education requirements, and can be available for one-on-one meetings, client seminars, group webinars, and staff training sessions. During implementation, we will conduct comprehensive product and sales training sessions with all advisors. Following the initial training, CD Funding's available compliance testing module can be utilized to help ensure an understanding of Market-Linked CDs among financial advisors prior to selling the product. As its own broker/dealer, CD Funding stays apprised of the most current rules and regulations surrounding MLCDs. The compliance test questions are regularly monitored to ensure the most current and relevant information is included. Upon successful completion of the compliance test, advisors will be able to offer MLCDs to clients.
Advisor support will continue throughout the life of your partnership with CD Funding. Additional training sessions may be conducted to address changes in products from month to month, educate on new products, as well as provide comprehensive product training for new advisors joining your firm.
Why B/Ds Choose CD Funding to Offer Market-Linked CDs
MLCDs are a compelling solution for clients seeking a balance of risk/return. A research study presented at the 2012 annual BISA conference1 identified MLCDs as the fastest growing product for Bank B/Ds in 2011.
1 Source: Kehrer-LIMRA, BISA 2012 Annual Convention
Providing a comprehensive list of offerings from nearly all national bank issuers helps differentiate your firm from others.
A study conducted by Kehrer-LIMRA based on 2011 data indicated banks that offer MLCDs earn 51% more in investment program revenue than banks that do not offer MLCDs1
1 Source: Kehrer-LIMRA, BISA 2012 Annual Convention