Page 22 - Investment Advisor July/August 2022

RIA LESSONS & LEADERS

By Mark Elzweig

7 Characteristics of Top Advisors Who’ve

Successfully Moved Their Books

Each time a client signs the transfer papers is a ringing endorsement of
their financial advisor. Here’s why.

’ve been privileged to work with ents why they’d be able to service their
many advisors and high-end advi- accounts better at their new firm.
Isor teams over the years who mas-
terfully transitioned their clients to 4. Followed the Rules
new firms. Within a month or two, they They didn’t notify their clients in
brought over almost all of their desired advance or take prohibited materials.
clients and began to ramp up their busi-
ness at the new firm. 5. Chose Firms With Crackerjack
In my mind, every time a client opted carefully reviewed outside managers Transition Teams
to sign the transfer papers was a ringing for example with an eye to matching up It’s essential to have an experienced and
endorsement of their value as a financial products and fees. dedicated transition team in your cor-
advisor. They accomplished this in all They worked closely with the pro- ner. I still remember as a young recruiter
kinds of markets, despite their clients spective firm to anticipate and plan for the time in which a branch manager
often being bombarded with creepy calls any problems in the transfer of customer professed not to need the services of a
from predatory advisors and branch accounts. These advisors seized upon transition team. Instead, he said that
managers at their former firms. the expanded competencies or superior his assistant would help out. That, of
So, what did these first-rate advisors culture of their new firm to get clients course, didn’t end well.
have in common? excited about their move. In my mind,
their painstaking due diligence was not 6. Knew How to Harness the
1. Solid Client Relationships just a practical business strategy but Power of Social Media
Each one of these advisors was at the an expression of how much they cared Once they joined their new firm, their
center of their client’s financial lives. In about their clients. web presence was transformed to reflect
the client’s eyes, their advisor was akin their new affiliation. Both firm websites
to a conductor of a world-class sympho- 3. Thorough Preparation and LinkedIn profiles help to get the word
ny orchestra, and the firm was more like All of these top-performing advisors out about their new affiliation. Hiring
the musicians behind the scenes. Clients had called the prospective firm’s legal firms often posted online announcements
viewed the firm for which the advisor department and had extensive conver- that these advisors shared with clients.
worked as certainly worthy, but it was sations with the transition team. They
their advisor who truly understood their knew exactly what to expect. 7. Took Imperfections in Stride
needs and devised the optimal invest- If they were coming from a protocol Sometimes, no matter how hard you try,
ment and financial planning program to firm, they entered all allowable client some things go wrong. During COVID, I
service them. contact information into the new firm’s worked with an advisor who was expect-
portal before the move. Advisors from ing clients to return ACATS materials
2. Extensive Due Diligence non-protocol firms understood clearly in to his new branch. Instead, his boutique
Prior to the Move advance what was permitted and exactly firm was forced to temporarily close his
Each of these advisors did extensive what the boundaries were on things they branch. He took it in stride because he
due diligence on the platforms of pro- could and couldn’t do. These advisors knew that he had solid client relationships
spective firms. This enabled them to also had devised a strategy beforehand and that he’d landed in the right place.
ensure that they’d be able to serve cli- on how to get clients excited about their Since then, his business has blossomed in Adobe Stock
ents properly at their new venue. They move. They were ready to explain to cli- ways that he’d never imagined.

20 INVESTMENT ADVISOR JULY/AUGUST 2022 | ThinkAdvisor.com