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The coronavirus pandemic has increased how influential compensation and technology are in advisors' decisions to move firms, Fidelity Investments reported Tuesday.
Four in 10 advisors in a survey agreed that industry-wide digital enhancements due to the pandemic had made it easier to switch firms.
At the same time, more than half said a key factor in their decision was concern about potential difficulties transferring accounts in a virtual environment.
Nevertheless, many advisors have been successful transitioning firms in a fully remote environment, Fidelity said, noting that it has supported more than 140 transitions since March.
Fidelity said it has facilitated several moves by a new digital bulk advisor onboarding solution, and increased digital tools training for advisors. It has also expanded eSignature availability, resulting in a 190% increase in eSignature enrollment between March 1 and Oct. 1, and a fourfold increase in eSignature transactions.
"The pandemic may prove to be a catalyst for advisors considering a move as the remote environment has — for many advisors — emphasized the benefits of greater flexibility," Charles Phelan, vice president of practice management and consulting for Fidelity Institutional, said in a statement.
