Facing The Fee-Based Future: As banks seek more fee-based business, reps have to prepare themselves.

Banks' shift to fee-based business can appear glacial, both in terms of speed and inevitability. But that inexorable movement is prompting a change in the way bank investment sales managers hire reps. More than ever, banks are looking for qualities and experience in reps that indicate advisory capabilities to support the new way of doing business.

The key element in a new hire, as it's always been, is a rep's book of overall business. If it's at least $500,000 in gross production, says Ken Friedman, president of The Primary Group in Orlando, a rep is virtually guaranteed a job somewhere, assuming there are no securities violations on his or her U4. But a healthy chunk of that production should stem from fee-based business.

"Most firms request at least 50% of a book in fee-based, managed …