When the Advisor Is the Heir, and the Client Is the Asset

One important question is, "How did we get here?" If the bonds between the advisor and the client were strong, why were you brought into the picture?

The other advisor might have retired or moved to another firm. Perhaps the advisor died.

Let's hope the advisor was not fired, or banned from the industry for committing a crime.

The account is now yours.

What next?

Bear in mind that not all client relationships are strong, long-term relationships. Sometimes, a long-term client might have been reassigned several times.

This might have happened before, so the client says, "OK, you're my new advisor."

Other times, the reassignment is traumatic. The client's comfortable relationship has changed.

Consider the Golden Rule: "Do unto others as you would have them do unto you."

When word gets out that the clients' former advisor has left for another firm, the clients might be eager to follow the advisor.

If so, you could introduce yourself and ask for the opportunity to make the case for the clients to stay, but show that you're respecting their decision to move.

Let's assume this is not the case for all of the advisor's clients. At least one client is not moving or is open to staying.

How should you proceed?

1. What not to do.

Don't approach this as a done deal:

Don't go in with the attitude, "You're my client now. Let me tell you how I do business."

Although the client is under your production number now, treat the client as a warm lead.

The former advisor won the client over. Now it's your turn.

2. Why have you reached out quickly? This person is a client of the firm.

The client should have a contact person at all times. The former advisor was that contact person.

Your manager asked you to step into the role as the client's new advisor, effective immediately.

The client's relationship is important to the firm.

3. Do background research.

How long has the individual been a client?

What's the client's style of investing, managing risk and planning for the future?

Are there other accounts housed together? Is there a mortgage, life insurance policy or annuity in the picture?

What personal notes, interests and details are in the CRM system?

Start your conversation by knowing a little about the client.

4. This is a two-way relationship.

Ideally, you can get an appointment set up to meet this client in person.

You want the client to be comfortable with you, and vice versa.

This first meeting could involve a review of the client's financial plan and the investments and insurance policies in the client's portfolio.

Let the client know that the client is not just another number.

5. Let the client do the talking.

You can learn a certain amount from the client's financial plan and account records.

Who comes up with the investment ideas? Are most of the client's financial assets at the firm or held elsewhere?

How was the client's relationship with the previous advisor?

What did the client like best about the previous advisor? Where is there room for improvement?

6. Don't make demands.

You might think the client should consolidate outside accounts with you.

You might prefer a certain way of doing business.

Don't try to get the client to conform to your way of doing things until you have built up trust.

It's about evolution, not revolution.

7. Don't try to sell the client something immediately.

The client doesn't know you yet.

You're "the new guy." Unless there is a serious problem in the client's portfolio, don't try selling the client something at your initial meeting.

Otherwise, the client might think you're only interested in ringing the cash register.

8. Treat the client's account as you would a newly opened account.

The client has a new account, of sorts.

Give the client the attention you give to clients who have recently come on board.

Learn how much attention the client expects and the client's preferred channel of communication.

9. Build trust, then gently transition.

Everyone needs to get comfortable with everyone else.

Be responsive to the client.

Gradually introduce how you work with clients.

Explain the benefits to the client from your approach.

Gradually bring the client around to your way of doing business.

Bear in mind that the client has the option to ask the manager to reassign them again if this is not a good fit.

You will do your best, but the interests of the client come first.

Bryce Sanders, president of Perceptive Business Solutions Inc., has provided training for the financial services industry on high-net-worth client acquisition since 2001. He is the author of the book “Captivating the Wealthy Investor.”

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