Shelby Nicholl, an independent consultant working with financial advisors and wealth planners aiming to change firms, suggests several questions they should ask themselves when considering a switch.
The Muriel Consulting founder — Nicholl named her firm for the New York Stock Exchange’s first female member, Muriel Siebert — also offers advice on negotiating, legal steps and other matters for financial pros taking this major step.
Before establishing the firm last year, Nicholl, who is based near St. Louis, most recently spent nearly two years at LPL Financial and close to nine years at Edward Jones.
By email, Nicholl discussed red flags advisors should watch out for — both at their current firm and in the moving process — and why she expects another wave of breakaway advisors.
THINKADVISOR: How should advisors know if their current firm is a good fit or if it's time for a change?
SHELBY NICHOLL: Deciding to leave a firm is a life-changing decision. Your practice isn’t just your livelihood — it’s likely your most valuable asset. Making a move is also an emotional process, as many advisors feel loyalty to the firm that gave them their start.
And while you can feel loyalty and gratitude, you also owe it to yourself and your clients to stay proactive. Treat your business as a fiduciary would — monitoring the industry and ensuring your firm continues to align with your clients’ needs and your ambitions.
Some “dealbreakers” signal it’s time to move:
- Tightening compliance rules, especially those requiring reporting on colleagues. Yes, this is happening.
- Changes in product availability, pricing or compensation with negative downstream effects for your clients.
Beyond these red flags, ask yourself:
- Does the firm’s culture align with my values?
- Is the firm keeping pace with industry trends and what my clients need?
- Who is the firm’s core client base? If they primarily serve ultra-high-net-worth clients but you focus on mass affluent investors, or if they cater to business owners while you specialize in retirees, you may feel like you’re swimming against the current every day.
- When you do the math on the total fees you and your clients are paying to your firm, are you getting that amount of value in return? If it feels like your firm is taking first-class flights while you and your clients are stuck in economy, it may be time to rethink your options.
If these questions raise doubts, it’s worth exploring your options. The best advisors don’t wait until circumstances force a change — they evaluate their fit proactively.
What should advisors consider when switching firms?
Making a career-defining move is one of the most important — and complex — decisions you’ll face. For many/most advisors, it’s not something you’re doing frequently, which means it’s anxiety-provoking and complex. At Muriel Consulting, we help advisors find their "perfect fit firm" by looking through three key lenses:
- Functional fit: Does the firm provide the client solutions, products, investment approaches, and technology you need to serve clients effectively?
- Financial fit: What is the upfront and ongoing payout structure? How does this structure change as your business grows? What is the optionality you have for adding new service lines or moving channels to the RIA channel, etc.? And, everyone must ask: What is the impact of the firm decision on the long-term enterprise value of your practice?
- Personality fit: What is the ideal culture and leadership fit for you and your clients? Do you fit into the community of advisors and teams? What learning & development activities are promoted? Will you find role models and/or the opportunities to mentor others?
When we work with advisors, we don’t just talk through these criteria — we document them. This way, we ensure alignment to your stated goals, even when an unaligned firm dangles an impressive transition package.
How should advisors negotiate compensation when switching firms?
This is my favorite part of what I do alongside the advisors I work with and I have two tips:
- Negotiation is all about having the right information. The more you know about industry trends, what firms are offering and how different packages compare, the stronger your position. Tap into information sources, including independent recruiter consultants and industry colleagues.
- A successful negotiation isn’t just about landing the highest payout or transition package — it’s about securing the resources to set you and your team up for long-term success. Research on negotiation effectiveness finds that negotiating on behalf of others yields higher results, so take note of what you can do with the funds — the investments you can make, the staff bonus pools you can fund, etc. Negotiating from that mindset proves more successful.
Above all else, follow the guidance of legal counsel. I primarily work with breakaways leaving captive, non-protocol firms with a high threat of litigation. I strongly recommend working with specialized legal experts, such as Kimberley Cronin.
Beyond legal considerations, have a game plan for client retention. We work with advisors to document a detailed strategy for outreach — aligned with legal requirements — for the transition period and the months that follow.
Your clients are moving with you because of the relationship you’ve built. A well-structured communication plan — executed at the right time and in the right way — helps ensure they feel confident in following you to your new firm. After all, serving clients well is one of the main reasons advisors make a move in the first place.
What red flags should advisors watch out for when switching firms?
If anyone tells you switching firms is “easy,” run the other way! If you’re a breakaway, a great platform partner — broker-dealer, custodian or RIA platform — delivers much of the support, but they don’t cover everything. Beyond account transitions, investment mapping and paperwork, you’ll also need to handle:
- Founding your business legally and financially
- Naming and branding your practice
- Leasing and outfitting office space
- Establishing your human resources processes and policies
Also, a successful transition is about more than picking the right platform, custodian, and tech stack, it’s about the people — your team members, your clients and your family. Every person involved is going through their own change journey, so be ready to share your vision and coach them through the process. Remember, once you’re through the move, you’ll have new energy to grow and for your team to thrive.
Any tips for advisors considering a move?
Use an independent recruiter. Firms and platform-specific recruiters have their own agendas, whereas independent recruiters remain objective.
And when working with a third-party recruiter, ask how they’re compensated. A good recruiter will be upfront about any compensation differences between firms they recommend, ensuring their guidance is truly in your best interest.
What trends are you seeing in advisors switching firms or staying put?
One trend I’m watching closely is the RIA breakaway movement. As private equity firms and aggregators acquire RIAs, many experienced advisors — with 15+ years in the business — are seeing their career trajectories stall. Where they once expected to buy out a senior advisor, they’re now being funneled into an employee model.
At the same time, these advisors are running the numbers. I have chatted with several recently whose compensation is 20% or less of the revenue they generate — less than they would make a wirehouse. I anticipate another wave of entrepreneurial advisors breaking away to take back control of their careers and earning potential.
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