Navigating the Transition Process

Successful transitions start with the right decisions

For financial advisors, regardless of their operating scale or current business model, the decision to transition is a big step. It’s a decision that requires thorough evaluation on both a personal and professional level. If you, as an advisor, have chosen to leave your current broker dealer then the chances are high that you’ve made that decision in an effort to find a better fit.

Just as your clients deserve personalized solutions to reach their investment goals, you deserve a personalized partnership that helps you reach your business goals. Deciding who to partner with is just as important as the why behind your decision to transition in the first place. 

How do you choose the best broker/dealer? Read this recent article to find out. 

You want a partner that can deliver on the expectations you’ve set for your practice by aligning with your values and offering the products and platforms to help you serve your clients. And, you want a partner who can help you and your team navigate all aspects of the transition — both the expected and unexpected, in a variety of areas.

Here are a few simple transition checklists to guide you when switching firms as a financial advisor: 

Navigating the planning process

Being properly prepared, as much as possible, for your transition is crucial. There’s a lot that falls under “planning” but getting organized in general is a good place to start. If you haven’t yet chosen a new firm then now is the time to dive into research mode and really get to know what firms have to offer for you now and into the future. Now is the time to:

• Determine your resignation date.
• Create a timeline for your transition.
• Organize and update your current client list.
• Share the news with your continuing team members. 

The right partner will be there to help you address each of these items. That’s why it’s important to choose a partner that offers: 

• A team to guide you through transitioning with precision and clarity and provide a customized roadmap — and a menu of contacts and resources — so you can get back to running your practice as quickly as possible.
• Expert business consultants to analyze your business[PS1]  and evaluate your strengths, while helping your business limit risk and find opportunities for future success before and after transitioning.
  

Navigating legal issues and evolving regulations

Financial advisors who intend to transition need to be aware of any legal obligations and agreements to their current firms — especially when and where they relate to their current book of business. Having legal support and guidance is essential during transition planning. You’ll need to:

• Have a plan to update and transfer relevant licenses.
• Determine what client data you can legally access and utilize if under ‘Broker Protocol’ regulations.
• Be up to speed on any regulatory updates or changes regarding transitions. 

Again, the right partner will be there to help you address each of these items. That’s why it’s important to choose a partner that offers: 

• Compliance services to ensure you remain legally compliant with regulations without you losing extra time and finances in the process. Your new firm should make your compliance a priority through training, expert knowledge, assistance, and automated processes, tools and technology.
• Education through training and learning experiences that ensure that your practice evolves and grows with changes in technology, trends, markets, regulation, and client expectations. 

Navigating client conversations and relationships 

Your clients trust you and value your advice — more than likely, they’ll choose to follow you to your new partnering firm. However, they may have questions for you about how this will affect their communication with you, their investments, and their costs. Prior to connecting with the investing clients you hope to bring along, you should plan to take steps such as: 

• Determine which clients you wish to continue working with and which you do not.
• Prioritize your contact list. Be prepared to answer questions clients may have regarding your decision to change firms.
• Detailed plans for clients who wish to retain you as their financial advisor.

And, of course, with the right transitioning partner your continuing clients will experience the same support that you and your team receive. That’s why it’s important to choose a partner that offers: 

• Platforms that give advisors access to a variety of solutions for their clients’ investment goals with a broad array of options, and the service and tools to use them efficiently. 
• Service and support that helps advisors and clients clear hurdles that arise during transitional onboarding. With an efficient and specialized team of service professionals, advisors’ can keep their clients informed and confident at every step.

With LPL Financial, transitions offer opportunities

Financial advisors looking to break away from their old firms and transition into a more independent path of their own may find everything they need with LPL. Our goal is to help you, the advisor, reach your vision of success and to support you at every stage of change and progress. With LPL as a partner, you can expect a dedicated team to help you transition with less obstacles and more opportunities as you continue building your business your way. 

Disclosures

The views and opinions expressed by LPL Financial Advisor(s) may not be representative of the views of other Financial Advisors and are not indicative of future performance or success. Neither LPL Financial nor the LPL Financial Advisor can be held responsible for any direct or incidental loss incurred by applying any of the information offered.