Advisors change firms. Some more than others. There can be all sorts of reasons for making the move. Shopping around and interviewing is often done in secret. Trade publications talk about the compensation programs at different firms.
Changing firms isn’t easy, because the advisor hopes their clients will follow them. The former firm would like to retain them. Suppose you are sitting in front of a manager or recruiter at a competitor, and they ask: Why do you want to come to work for us?
There are obvious reasons no one talks about. Financial advisors are in this business to make money. They are helping clients achieve their dreams, but they want to be paid well while doing it. The competitor might have a more generous compensation package. Upfront bonuses and enhanced initial payouts can be a factor. That might be true, but don’t make that your primary reason. The person who leaves for a fat payday now might leave for another fat payday later.
Some advisors are on contracts. They might have left their initial firm, joined a competitor and signed a contract along the way. Their contract is now up, so they are looking for their next big payday.
One manager in the Midwest remarked that running an office “is like managing a professional sports team.” His point was your best players might be on contract and don’t have significant loyalty to the firm. Looking for your next big deal might not be what the recruiter or hiring manager is seeking. They could understand why an advisor wants to make one big career move, but not several.
There might be advisors who see a big legal problem looming on their horizon and are trying to outrun it. This will likely turn up when this competitor does their due diligence. They do not want to take ownership of another firm’s problem.
Whether you are moving between wirehouses or large banks, looking for a new broker-dealer or affiliation model, or looking to go independent, you will need to articulate why you want to make a move. You want to put your clients' interests first, and you likely have a need that's not being met. You can make your case without sounding opportunistic.
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