Transcript INITIAL AND EXIT INTERVIEW - North American Securities

Interviewing
Techniques
2010 NASAA Investment Adviser Training
Dallas, TX
________________________________________
Presented by:
Darren Kearns CFP®
The Introduction
• Show identification
• Provide business card
• Provide letter of introduction
• Provide books & records request list
• Explain the exam process and estimated
time period. Put the Interviewee at ease
& help create their expectations
Initial Interview
• Interview the owner or principal officer
• What is the purpose?
To gather information about the IA such
as type of business, services offered,
personnel, investments, size, fees,
operations, conflicts, affiliations,
advertising, and solicitor relationships
Initial Interview
• Techniques
 Use more open-end questions vs closed-end
 Closed end “Do you advertise?”
 Open end “What kind of advertising are you doing?” or
“Tell me about your advertising”
 Continue to put interviewee at ease. The more relaxed
you are, the more relaxed they are (can help create a
more cooperative exam)
 Paraphrase answers to ensure understanding and avoid
miscommunications
 “So you have the client sign a receipt documenting that they
have received the Form ADV”
 Listen VERY carefully & take VERY good notes
Initial Interview
• Techniques
 Never assume
 Don’t overwhelm
 Watch for nonverbal communications
“Actions speak louder than words”
 Allow IA to ask questions
 Don’t lead interviewee in questions
 “You do offer the ADV annually, don’t you”
 Document conversation
Keys to Success
• Always remain calm even when interviewee is
upset
• Always be professional and polite
• Don’t be intimidating or talk down to the
interviewee. This can result in a more guarded
response
• Don’t get into a yelling contest or argument
It’s an Interview NOT an
Interrogation
Cornerstones of Effective
Communication
• Listening – Be empathetic, active and prepared to
really listen
• Suspension of judgment – Try to see other’s point
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of view to achieve their frame of reference
Feedback – Do not assume everything you say and
they say are understood
Understanding – Accurate reception and
interpretation of a message
Openness – Candid disclosure of findings, bad news
and important facts. Let them know your going to find
issues (no one is perfect)
After Initial Interview
• Ask for a tour of the office
 Introductions to key contact personnel (operations,
financial, etc.)
 Location of books and records
 Copier and workspace location
 Restrooms
• Continue the examination
Characteristics of a Good
Interviewer
• Understanding the interviewer is attempting
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to obtain only the relevant facts and is not
“out to get someone”
Does not appear to be a threat
A people person and talented at human
interaction
Does not interrupt the interviewee
Displays an interest in interviewee and what
is being said
Body Language
• The evaluation of an interviewee’s body
language can provide the examiner with
insight of the interviewee
• Eyes can provide important nonverbal signs
 Closing eyes, covering eyes, break in eye
contact may suggest deceit
• Touching of face (touching nose, rubbing
chin) is often a nervous reaction
• Blushing – Indicates increased blood
pressure, indicating pressure or stress
Body Language
• Crossing of arms may indicate a defensive
reaction
• Hands or fingers over the mouth may indicate
deception
• Excessive perspiration, shallow or labored
breathing is a typical reaction of dishonest
persons
• Honest persons may lean forward when
questions are serious
Verbal Clues
• Deceptive people often speed up or slow down
their speech, or speak louder. Have tendency
to cough or clear their throats
• Liars frequently will repeat the interviewer’s
question to gain more time to think of what to
say. “What was that again?”
• Dishonest people may add what they believe
credibility to their lies, such as “ I swear,”
“Honestly,” “to tell you the truth,” or “frankly”
• Generally honest people just say “yes” or “no”
Interviewee Attitudes
Truthful
Untruthful
Calm
Impatient
Relaxed
Tense
Cooperative
Defensive
Sincere
Overly friendly, polite
Inflexible
Defeated
Cordial
Surly
Common Mistakes in
Interviewing
• Most common is made by novice interviewers
in trying to impress the interviewee with their
knowledge. This can make the interviewee
feel threatened and result in guarded responses
• Not paying attention to verbal and non-verbal
clues
• Failure to take good notes
• Failing to put the interviewee at ease
Interviewing Tips
• Create Rapport –
Shake hands in introduction – This helps
breaks down psychological barriers
A little small talk before proceeding into
interview
Gesture openly with arms, lean forward in a
manner to indicate interest
Make eye contact – Personalizes
communication and creates a more
comfortable environment
Interviewing Tips
• Take your time & do not rush
 Rushing will result in more questions than answers
back at the office
• Practice, Practice, Practice
• Methodical
 Think about ways to get answers and uncover
information
 Develop your own process that works for you
• Document answers clearly with as many notes
as you need
Questions???
Armadillo
Financial, Inc.
“Don’t let the market
run you over”
______________________________________________________________________________
Randy Mullikin as Examiner
Darren Kearns as William B. Travis