5 Keys to a Seamless Move to Another Firm

3. Choose the Right Partners

All of this is not to say that transitions are without risk. The complications of mishandled paperwork, missing information requiring clients to redo tasks and the delays that sometimes plague the process are real and can become an annoyance.

It is therefore crucial that an advisor not only understands the process but chooses a partner firm that has successfully transitioned advisors and can clearly articulate the plan and the sequence of steps that will be followed. 

From client communication through the execution of new agreements and the transfer of the accounts, the receiving firm should have a clear playbook that can be shared with the advisor well ahead of the actual move. Successful firms that provide independent advisors a platform for supported independence invest heavily in the human capital required to make these transitions as seamless as possible, and advisors who are considering a move should be well acquainted with the team that will handle this. 

4. Be Clear on the Legal Situation

When advisors move from a captive or employee channel toward independence, there can be considerations around their employment agreements that need to be addressed. 

The receiving firm should have access to a roster of experienced employment attorneys who understand the industry and can provide guidance on items such as employment agreements, the Broker Protocol and non-compete language, all considerations that cannot be ignored in a successful transition. Once again, advisors should lean heavily on the firm they have chosen to join to provide access to this expertise, as it is in everyone’s best interest for the process to move smoothly. 

5. Keep One Thing in Mind

Good advisors choose to change firms for reasons that ultimately make sense for themselves as well as their clients. While the process is certainly not frictionless, an experienced partner can make the move one that minimizes the disruption that advisors and their clients go through. 

The most important thing to keep in mind is that clients’ strongest affiliation is with their trusted advisor, and that relationship supersedes any notion of firm, platform or brand. If the message is delivered clearly, the preparation is diligent and detailed and the partnership is experienced and sound, moving forward toward a better situation should be a manageable success. 

Matt Regan is president and CEO of Wealthcare, which works to elevate financial advisors with comprehensive support services.