Advisors evaluating a new firm should ask key questions to determine if it aligns with their long-term goals and client needs.
- First, understanding who owns the firm reveals its revenue structure, potential proprietary product requirements, and overall objectivity.
- Second, clarifying who owns the book of business is crucial, as it impacts client retention and succession planning in the event of a departure.
- Third, identifying the firm’s clearing firm or custodian helps advisors assess whether transitioning will be smooth or require significant operational changes.
Staying with a familiar platform can simplify the move, while switching may present challenges.
Finsum: By addressing these questions upfront, advisors can make informed decisions about their professional future.