Page 39 - Investment Advisor June 2023

RIA leSSOnS & leADeRS

By Mark Elzweig

7 no-nos When switching Firms

moving to a new advisory firm can be a perilous undertaking without the
proper preparation and execution.

oving to a new firm can be
a perilous undertaking with-
Mout the proper preparation
and execution. Employee advisors have
to be especially mindful of branch man-
agers and advisors at their old firm who
will try and thwart their move.
Here are seven blunders that could
make your move extremely dicey.

dIsCussInG your uPCoMInG
1 Move WItH otHer AdvIsors
The famous World War II admonition accounts. It may also be advisable to It’s imperative that after switching
“Loose lips sink ships” applies here. The hire your own attorney. firms you prioritize work on moving
consequences of loose, unguarded talk your business over to your new affilia-
can be calamitous. BeInG Clueless ABout tHe tion. This is your paramount responsi-
Most advisors in your branch are 3 trAnsFer ProCess bility for at least the first two months.
competitors and not friends. You’ll want Multiple calls or meetings with the tran-
to be sure that your branch manager and sition team are a must before your resig- not stAyInG In Front oF
other advisors do not have any advance nation. You’ll need to familiarize yourself 5 ClIents PrIor to your Move
knowledge about your move. They with the transfer process and understand The most successful advisors with
should be astonished when you resign. how each stage of the process works. whom I’ve worked spent a lot of time
Otherwise, you’re giving them pretext to Carefully study the prospective bolstering their client relationships
fire you or a head start in planning how firm’s account opening forms. Do you prior to their move. They did client
to prospect your book. know exactly what information you’ll reviews and had lots of meetings and
need to open an account? Can you mon- calls with their clients.
FAIlInG to PlAy By tHe rules itor what stage of the process the new In a subtle manner, they reinforced
2 You’ll need to have in-depth con- account is in and do you know what their position as indispensable, trusted
versations with the prospective firm’s needs to happen next? advisors. They were the choreographers
legal department. Talking to clients of the optimal investment and financial
in advance about your move or tak- tAkInG your eye oFF tHe BAll planning programs for their clients.
ing confidential non-public information 4 I once worked with an indepen- Once they moved elsewhere, they had
like Social Security numbers or account dent advisor who was strangely unfo- no problems signing up their key inves-
holdings are big no-nos. cused throughout the transition process. tor clients at their new firm.
Those missteps can trigger tem- He was erratic and lackadaisical about
porary restraining orders, even in an calling clients due to a sense of overconfi- lACkInG ClArIty on tHe
exit from one of the firms that’s part dence in the strength of his relationships. 6 reAsons to Move
of the Protocol for Broker Recruiting. He also failed to convey a sense of You must be able to offer clients a suc-
If you’re leaving a non-protocol firm, urgency during the account transfer pro- cinct rationale for why your move is best
you’ll need to be especially diligent in cess. He was the holder of two master’s for them. This can involve a superior
Adobe Stock spective firm. Firms differ in what neous details. Not surprisingly, he lost access to key department heads at the
degrees and got lost in all kinds of extra-
investment platform or your increased
following instructions from the pro-
new firm.
they want you to do to avoid soliciting
many of his assets during the transition.
June 2023 Investment AdvIsor 37