How to Choose Financial Advisor Transition Services

You’ve decided that it’s time to move on from your current situation. Maybe you’re ready to go independent, or you’ve decided to accept a position with a new firm. Financial advisor transition services are there to help. And working with a transition specialist can help you better navigate the next phase of your professional journey.

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What Financial Advisor Transition Services Do

Transitioning an advisory practice doesn’t happen overnight. It’s a multi-stage process that takes time and patience. Financial advisor transition services offer specialized help in getting you from where you are now to where you plan to go.

Your transition team may assist with:

Establishing a timeline for the transition
Organizing and updating client information
Repapering and obtaining updated signatures on necessary documents
Ensuring compliance throughout each phase of the transition

All of that can take some of the weight off your shoulders and make what’s often a complex process less stressful.

Of course, there’s a financial investment involved, since you’ll pay the transition team for their time and expertise. In terms of when it’s worth it to get help with your move, it could make sense if you want to make your transition as seamless as possible, with minimal disruption to your clients and revenue.

How to Choose Financial Advisor Transition Services

An advisor having a consultation with a financial advisor transition service.

Working with a transition service is a partnership, and while it’s temporary, it’s important to have the right team on your side. Here are some tips to keep in mind as you choose a company to work with.

Clarify Your Needs

What are you hoping a transition service can help with? That’s a good question to ask as you begin your search, as it can help you set appropriate expectations for:

What your transition team will (or won’t) do for you
When the process should realistically be completed
How obstacles or challenges will be handled should they arise

An advisory transition service may be able to do a lot for you, but not everything. It’s important to consider what’s expected of you throughout the process.

Compare Transition Services

Transition typically has a lot of moving parts, and you don’t want anything to slip through the cracks. Asking questions can help you better understand what a financial advisor transition team does. Some questions you might ask include:

Is there a particular type of advisor you specialize in working with?
What technology resources or tools do you offer to assist with the transition process?
Will you help develop and implement a strategic plan for client communication?
Do you assist with establishing my firm at a new custodian and setting up new accounts?
Will you handle any updated filing requirements with the SEC?
How do you approach repapering, and how long can I expect that part of the transition to take?
Do you have compliance specialists who help with creating and reviewing necessary documents?
Will you help with any logistical needs, such as securing office space and utility services?
Do you help with updating branding, retooling marketing plans or establishing a new website for my firm?
How much involvement is expected from me to make the transition, and how will I be able to monitor my progress? For example, do you provide a secure transition dashboard or portal I can access?
Will I be assigned a dedicated transition specialist, or will I work with a team?
What level of support will you provide once the transition is complete, and how long will that support be available?

These questions are detailed, but necessary to help you better understand what a transition service can offer. In addition to this list, you’ll also want to ask about the cost that’s associated with their help.

Financial advisor transition services may charge a flat fee, a percentage-based fee or a combination of the two. Transparency is what you’re looking for here when asking for an explanation of fees. If a transition service is reluctant to disclose its fee structure without a specific commitment from you, that’s a potential red flag.

Talk to Other Advisors

One of the most effective ways to find a good transition service to work with is to talk to advisors who have already been through the process. Someone who’s gone independent or changed firms with the help of a transition team can offer their perspective on what the experience is like and how to choose a service to work with.

If you don’t have anyone in your immediate network who’s been through the process or whom you’d be comfortable asking, you might turn to social media instead. For example, you could ask for feedback on transition services from other advisors on LinkedIn. Chances are, you’ll get at least one person who’s willing to chime in and share some details about who they worked with.

Trust Your Instincts

A reputable financial advisor transition service should have some markers that indicate it’s a company you can trust. Free consultations, full transparency surrounding services and fees, and a qualified team are all positives that can help you feel reassured about your choice.

In case you’re wondering what red flags you should watch out for, the list includes:

Hesitancy to answer questions or a general lack of transparency about what the company does or what they charge
Slow responses to emails, calls or texts that leave you feeling like you’re constantly trying to chase them down
Promises or guarantees that seem too good to be true

Simply put, go with your gut.

Bottom Line

An advisor comparing financial advisor transition services.

Going independent or changing firms is an exciting prospect, and financial advisor transition services can help at every step of the way. Doing some research and asking detailed questions are essential for narrowing down the field.

Tips for Growing Your Advisory Business

A solid marketing plan is indispensable when growing an independent practice is the goal. If marketing feels overwhelming or you aren’t sure how to make the best use of your time, you might consider partnering with an expert. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
If you’re not ready to go fully independent, you might consider an RIA aggregator instead. RIA aggregators provide advisors with everything they need to run a thriving practice, including tech tools, compliance frameworks and ongoing support. Researching top aggregators and the benefits they offer can help you decide if it’s the right path for you.