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Frequently Asked Questions (FAQs)
Industry
- What is a broker/dealer?
- What does it mean to be "independent?"
- Why have our advisors chosen to affiliate with Commonwealth?
Company structure
- How many advisors do you have, and how many home office employees do you have to support them?
- Where are you located?
- Will Commonwealth stay independent and privately owned?
Culture
- What makes Commonwealth a great place to work?
- Are there job growth opportunities in the firm?
- How often do advisors come to the home office?
Benefits
- How much Paid Time Off (PTO) do I get my first year?
- How does the tuition reimbursement program work?
- When can I join the 401k plan and does Commonwealth match my contribution?
Industy
Q: What is a broker/dealer?
A: A broker/dealer is a company that buys and sells investment products on behalf of investors. In our case, investors don’t contact us directly; rather, we receive instructions from the 1,000-plus financial professionals who are affiliated with us. Commonwealth advisors are independent business owners who have relationships with their clients, and we function as the unseen back office that processes client transactions for them.
Ours is a heavily regulated business. The SEC (Securities and Exchange Commission) delegates the supervision of financial advisors to FINRA (Financial Industry Regulatory Authority). FINRA, in turn, requires every financial advisor to affiliate with one, and only one, broker/dealer, so that the chain of responsibility is clear.
Q:What does it mean to be "independent?"
A: Commonwealth is an “independent” broker/dealer, which means that our advisors work for themselves out of their own offices and are free to help their clients choose the best investment products—without pressure to sell a particular company’s products—to meet their financial goals. This business model differs from that of other, large financial institutions, known as "wirehouses, " whose advisors (stock brokers) are employees of the company.
Q: Why have our advisors chosen to affiliate with Commonwealth?
A: People who affiliate with us are independent business owners who prefer to have unlimited freedom of choice in what they can offer clients. They tend to be entrepreneurial by nature and are comfortable with the responsibilities and challenges of running their own business.
The typical Commonwealth advisor chooses us for our ability to process client transactions with exceptional accuracy and professionalism, certainly. But equally important is our unparalleled reputation for helping them build successful businesses. We support our advisors by providing them with everything from technology to free practice management consultants. And it’s this added value—together with our focus on delivering indispensable service—that makes Commonwealth invaluable to those who want to strengthen their relationships with clients and to continue growing their businesses.
Company structure
Q: How many advisors do you have, and how many home office employees do
you have to support them?
A: Commonwealth has approximately 1,100 active producing
advisors and a home office staff of almost 400, which gives us a advisor-to-staff ratio of 2.8:1—one of the best in the industry.
Q: Where are you located?
A: Commonwealth has two home office locations: Waltham,
Massachusetts, and San Diego, California.
Q: Will Commonwealth stay independent and privately owned?
A: Commonwealth is 100-percent owned and controlled by the
management of the firm. The ownership and management have been stable
and consistent since 1979. All eleven principals of the firm have been
with Commonwealth between 14 and 29 years.
For many reasons, Commonwealth clearly looks to remain a privately
held firm. First and foremost, the principals of Commonwealth are
relatively young; they love what they do, whom they do it
with and have absolutely no intention of retiring from the business
anytime soon. Second, as one of the few remaining
truly independent firms, we have a competitive advantage in the
marketplace by remaining independent. In short, we think we’d be crazy
to sell a nicely growing business we love to an insurance company or a
bank that would immediately alter a culture we’ve spent nearly three decades
cultivating.
We also do not foresee going public. In our estimation, companies go
public for two reasons: it’s either a liquidity event for the owners, or
the company needs access to the broader capital markets to fund an
expansion beyond what it can internally finance. Commonwealth’s
ownership has no need or desire to “cash out.” We’re very satisfied
running our broker/dealer and do not harbor international
ambitions—and the last thing we want is the pressure of quarterly
numbers driving our management decisions.
The bottom line is that building this broker/dealer has been our
lifework, and retaining the autonomy to manage it while remaining true
to our core principles is essential. We value our independence
in much the same manner that our advisors value theirs.
Company Culture
Q: What makes Commonwealth a great place to work?
A: Commonwealth completely gets that it is about employee engagement;
that we work hard every day to make sure we attract competent, fun, vibrant, hard-working people.
This is how we protect our valuable culture. We work to achieve the four pillars of the mission statement: profitability, indispensable service, fun, and individual development. We invest in our people through
our professional development program; we create ways to make friends and have fun at work. The senior
management of the firm truly believes we are only as strong as our people.
Q: Are there job growth opportunities in the firm?
A: Yes, we ask that all employees remain in their department for a minimum of 12 months. We have ample job openings at any given time and if you take advantage of training programs, on-the-job learning opportunities, and develop true competency in a particular area, you should have opportunities to move. In 2005, we saw 45 employees moving upward and laterally within Commonwealth.
Q: How often do advisors come to the home office?
A: Advisors come in to visit on a regular basis. We have lots of opportunities to meet our customers.
Benefits
Q: How much paid time off do I get my first year?
A: Personal time off (PTO) is a bank of days that includes vacation time, sick days, or
any necessary time needed away from work, including all unforeseen circumstances. PTO gives employees
responsibility for deciding how to use their personal time off, without having to categorize it.
Employees are allowed 16 days in their first and second years of employment.
The number of days increases each year, reaching the maximum on the eighth year with 28 days.
Q: How does the tuition reimbursement program work?
A: Employees are eligible to apply for tuition assistance after completing six months of service.
Courses eligible for reimbursement are those taken at an accredited school and related to the employee’s
present or future work with the company. A maximum reimbursement of $5,250 is available for full-time
employees in each calendar year.
Q: When can I join the 401(k) plan and does Commonwealth match my contribution?
A: Commonwealth offers a 401(k) plan to allow employees to save additional money toward retirement.
Employees are eligible to participate on the first of the month following employment. After one year of employment,
Commonwealth provides an employer match of 50 cents for every dollar the employee defers, up to the first 10 percent
of his or her base salary. This means that if 10 percent of your monthly base salary equals $200, Commonwealth will
contribute $100 on your behalf.
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