Displaying items by tag: changing BDs

Raymond James is addressing a quieter challenge in the wealth management sector: helping independent advisors scale their teams amid growing client demands. This week, the firm introduced Talent Sourcing, a new in-house recruitment service that offers personalized hiring support, including candidate outreach and screening tailored to each advisory team's needs. 

The service aims to bridge the talent gap across roles ranging from junior advisors to specialized support staff, allowing advisors to focus on growth without sacrificing service quality. It arrives as competition for top advisory talent intensifies, especially following LPL's $2.7 billion acquisition of Commonwealth Financial. 

By providing a vetted shortlist of candidates, Talent Sourcing complements Raymond James’s broader suite of advisor tools, including its Paraplanning Services launched last year. 

Finsum: Ultimately, this initiative not only strengthens internal practices but also positions the firm to meet evolving client expectations for more comprehensive, value-added financial services.

While it’s often said that changing broker-dealers results in losing 30% of your client book, the actual retention rate depends heavily on where you're leaving from, where you're going, and how the transition is handled. Advisors moving from banks to independence often do face steeper losses, due to legal and structural barriers, while those shifting between independent broker-dealers typically experience much smaller attrition. 

The key to maintaining client loyalty lies in how the move is communicated—clients are more likely to stay if they understand how the switch benefits them, not just the advisor. Advisors should frame the conversation around enhanced service offerings, broader product access, reduced fees, or improved technology and stability. 

A real-world example saw one advisor retain 98% of clients by clearly articulating these benefits during a move from a failing firm to a more robust platform. 

Finsum: Ultimately, when advisors lead with client-first messaging, transitions can not only preserve but even grow their practice.

1) Changing broker-dealers involves legal complexities, including contracts, non-compete clauses, and client ownership issues. Consulting an attorney specializing in FINRA and SEC regulations ensures compliance and helps avoid costly mistakes.

2) Losing access to client accounts upon resignation makes preparation critical. A well-structured plan—created at least 90 days in advance—should categorize accounts, assess compatibility with the new firm, and identify opportunities for electronic processing to minimize disruptions.

3) Involving staff early ensures accountability and a smoother transition. Assigning clear roles, setting deadlines, and holding regular check-ins help distribute the workload, preventing last-minute challenges and ensuring a seamless move to the new broker-dealer.

Finsum: Navigating the broker dealer transition can be difficult but these three steps will make the process smooth

Switching to a new broker-dealer is often a complicated process, but finding the right partner can significantly improve your business and client service. Legal guidance is essential to avoid potential pitfalls, such as contractual issues or ownership disputes over client relationships. 

Developing a comprehensive transition plan will help organize client accounts and ensure the process runs smoothly. Engaging your team early allows for shared responsibility and clear goals throughout the transition. 

It’s also a good time to reassess your client base, streamlining relationships and services to align with your current practice. Finally, preparing client data properly and crafting a clear communication plan can help ensure a smooth and positive transition for everyone involved.

Finsum: Data, in particular, can be critical with the advances in information and technology.

Recruiting in wealth management has evolved significantly, with major shifts in deal structures and compensation trends. The size of recruiting deals has increased dramatically over time, especially among wirehouses and independent broker-dealers, but these deals are often accompanied by strict performance goals and lengthy lock-up periods. 

Clawback provisions and production guarantees are increasingly common, requiring advisors to meet specific asset transfer thresholds. 

While the large headline numbers may seem appealing, advisors need to carefully evaluate the conditions tied to the offers. Understanding the fine print is essential for making informed transition decisions.

Finsum: The numerical details of these provisions are key to switching and certainly should play a pivotal role in your cost benefit analysis