Displaying items by tag: changing firms
Changing Custodians Just Got Easier
TradePMR has introduced Fusion SYNC, an AI-powered tool designed to ease the custodian transition process for registered investment advisors (RIAs). By allowing advisors to upload complete client data and automatically transferring it to TradePMR’s Fusion platform, Fusion SYNC aims to reduce manual data entry and speed up transitions, potentially cutting transition time from weeks to days.
The tool also cross-checks for errors, minimizing the need for manual corrections and improving data accuracy. Jon Patullo, TradePMR’s chief product officer, emphasized that Fusion SYNC aims to ease the burdens of custodial transitions, helping advisors maintain client trust through streamlined service.
With 40% of advisory assets expected to change hands in the next decade, Fusion SYNC positions TradePMR as an early AI adopter in custodial services.
Finsum: Lean into technology, and particularly AI when it comes to changing custodians as it can greatly aid the data transfer process.
The Key to a Late Year Broker-Dealer Change
With 2024 coming to an end, financial advisors contemplating a switch to a new broker-dealer may wonder if there’s still time to make the move. While possible, the process can take several months depending on the complexity of the transition and level of support available.
Advisors looking to act quickly may benefit from financial incentives and smoother tax records by completing the transition before the new year. However, rushing such an important decision isn’t advisable, so careful planning and blocking time for key discussions is essential.
Transition consultants can help expedite the process by securing offers and guiding advisors through the logistics. Ultimately, those who begin the process now may still be able to switch broker-dealers by the end of 2024, but many may find it more practical to plan for early 2025.
Finsum: While it’s certainly late in the year these services could help optimize time in order for a smooth transition.
Being Ready to Change Custodians
Transitioning to a new custodian in the financial industry can seem challenging, especially with the complex regulatory environment. However, with thoughtful preparation and the right choice of custodian, the process can be seamless and beneficial.
This involves understanding the differences between bank custodians and broker-dealers, with banks often providing greater transparency, asset safety, and flexibility. Key steps include reviewing existing contracts, gathering necessary documents, and clearly communicating your organization’s needs to the new custodian.
Engaging a dedicated conversion team ensures a smooth transition by managing timelines, addressing concerns promptly, and customizing the process to your specific requirements. With these measures in place, you can successfully navigate the transition, allowing your organization to thrive with the support of a custodian that aligns with your long-term goals.
Finsum: These tips provide a nice framework for transitioning and considering wither you are ready, but keep in mind the technology accommodations as well.
What Switching BD’s Looks Like
When financial advisors decide to change their broker-dealer, they often face the challenge of transitioning their clients smoothly. Many worry about the paperwork, duration, and impact on revenue.
Insights from advisors who transitioned to Osaic Wealth reveal that 75%-100% of clients typically move with them, and the process takes about 60-90 days, though some clients move later. Having dedicated support is crucial.
Proper preparation, clear client communication, and understanding new systems are key to a successful transition. Advisors also note that initial revenue may drop but generally stabilizes or increases within a year.
Finsum: Leveraging the new BD and technology can really aid in the transition.
Top Considerations When Changing BDs
Deciding to switch broker-dealers can be transformative yet challenging for financial advisors. But Advisors should thoroughly consider how their new environment will affect them.
Evaluate the support, technology, and practice management tools the new firm offers to boost your business. Ensure the firm's values and advisor focus align with your working style.
Confirm that the firm supports your specific business needs and niche. Research the firm's reputation and past issues to ensure it aligns with your professional image.
Lastly, trust your instincts and seek expert advice if needed to make an informed decision.
Finsum: Sometimes we get too caught up in the minutia when considering a switch but these high-level questions are important.