4 Ways to Make Sure Your Clients Make the Move with You

Jun 25, 2014 @ 4:45 pm

By Tom Daley

+ Zoom

Most financial advisors change firms during the tenure of their careers for a variety of reasons. Navigating a smooth transition starts with a thorough vetting of at least five firms to find the right affiliation and business model to support the growth of your business. Here's why.

Once that decision has been made, it's important to focus on helping your clients make the transition as well.

Segmented Client List

A segmented client list will be crucial for organizing the first 90-days of your transition. Prioritize targeted clients whose asset management presents the greatest potential for growth.

As a rule of thumb, advisors providing strong customer service and enjoying solid relationships can expect 85%-90% of their targeted clients to make the move with them. Within the first 90 days of moving, 65%-70% of these client assets are likely to transfer with the remaining assets trickling in over the next three months.

Consistent Communication

Expect the first 90-days to be a hustle to communicate with your clients.

Don't underestimate the amount of time and multiple conversations some of your clients will require. This is particularly true for those who may be reluctant to move with you.

Be honest with yourself about the service level you have provided to your clients, especially those in your target segment. Report-card day is not the time to be surprised by your grade.

Perfect Your Pitch

Keep in mind: while changing firms is a major move in your world, clients often don't understand the urgency to fill out and return the paperwork to complete the asset transfer.

Explain why you are changing firms and how it will benefit the client. Let them know how the move means you can provide better service, whether it's with improved technology and compliance support or enhanced investment products.

Avoid Legal Red Tape

If moving efficiently in the first 90 days is crucial, nothing will slow you down more than legal red tape. Before you begin collecting contact information and reaching out to clients, understand the Protocol for Broker Recruiting governing the use of client information when registered representatives switch firms. Seek advice of an attorney, if necessary, to understand your contractual and legal obligations.

As in most things, communication preparation and organization will give clients the peace of mind to follow your lead and follow you to your next firm.


What do you think?

View comments

Recommended for you

Latest news & opinion

The appeal and pitfalls of holding unconventional assets in retirement accounts

While non-traditional asset classes held in individual retirement accounts may have return and portfolio diversification benefits, there are "unique complexities" that limit their value for most investors.

Wells Fargo's move to boost signing bonuses could give it a lift

Wirehouse is seen as trying to shore up adviser ranks that took a hit after banking scandal

New Jersey fines David Lerner Associates for nontraded REIT sales

Firm will pay $650,000 for suitability, compliance and books and records violations.

Report predicts $400 trillion retirement savings gap by 2050

Shortfall driven by longer life spans and disappointing investment returns.

Wells Fargo will ramp up spending to lure brokers

Wirehouse, after losing 400 brokers in first quarter, is bucking trend among rivals who have said they are going to cut back on spending big bucks recruiting veteran advisers


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print