Financial advisors are transitioning between firms more frequently as mergers and acquisitions (M&A) activity has been hot over the past few years. And given the average age of financial advisors is around 60, ownership of many practices will be changing in several years as advisors retire and complete their succession planning.
There are a lot of operational aspects to financial advisor transitions, requiring a transition plan to be put in place and several resources that require focus and attention. Typically, it can take a whole team of partners to manage which assets are being transferred in an efficient manner. However, with modern digital solutions, this process can be significantly streamlined, allowing for transitions to be completed in as little as 30 days.
Financial Advisor Transition Checklist
Advisors and firms should look for a game plan that will be deployed by the new firm’s advisor transitions team. Some points to keep in mind during advisor transitions are to determine the exit process from the previous firm and follow compliant protocols regarding client transitions.
Additionally, firms that are going through the transition process should work with their new financial advisor practice to create an agreed upon timeline for the transition and what steps need to be taken. This ensures there are minimal client service disruptions.
A comprehensive transition checklist should include:
- Exit strategy from the previous firm
- Compliance protocols for client transitions
- Timeline for the transition process
- Technology setup and data transfer plans
- Client communication strategy
- Regulatory and licensing requirements
- Training on new systems and processes
By following a structured checklist, advisors can ensure a smoother transition process, minimizing disruptions to their practice and maintaining strong client relationships.
Financial Advisor Transition Services
Many times, these operations are being performed manually, which can lead to investments not transferring properly to the new firm, a slow practice transition, or a poor client experience. But by incorporating technology into the transition process, business is more streamlined, growth of the new firm begins more quickly, and advisors are put in a position to succeed.
When firms are searching for technological advancements for transition implementation, advisors should place value in solutions that are easy to understand and implement.
Rather than the financial advisor trying to gather much of a client’s data, technological assistance can help them save time by giving clients the ability to input their data. But given that even the most well-meaning clients could benefit from a reminder that they have forgotten to complete some of the onboarding process, technology that provides those opportunities to trigger an investor’s memory are helpful parts of the process.
Security is an extremely important part of the transition process as data about assets and investments are being transferred. Modern transition solutions should offer robust security measures to protect sensitive client information throughout the entire process. This includes encrypted data transfer and strict access controls.
Additionally, transition services should offer:
- Customizable workflows that can be tailored to specific firm requirements and individual advisor needs
- Integration capabilities with major CRMs and clearing firms for seamless data transfer
- Built-in compliance safeguards to ensure adherence to SEC/FINRA regulations, particularly in the post-U5 environment
Streamline Your Transition with OnBord
As we’ve explored, financial advisor transitions can be complex and challenging. The need for efficient, secure, and compliant processes has never been greater. This is where OnBord comes in, offering a solution to transform your transition experience.
OnBord’s digital platform addresses the key challenges of advisor transitions:
- Speed and Efficiency: OnBord dramatically reduces transition time, allowing you to transfer your entire book of business in as little as 30 days. This means less disruption to your practice and faster revenue protection.
- Compliance Confidence: With built-in safeguards ensuring adherence to SEC/FINRA regulations, OnBord mitigates legal and regulatory risks in the post-U5 environment.
- Enhanced Client Experience: Our seamless digital process, including electronic signatures and pre-filled forms, provides a modern, hassle-free transition experience that strengthens client relationships and trust.
- Comprehensive Coverage: OnBord supports all lines of business – mutual funds, insurance, brokerage, and advisory – ensuring a holistic transition solution.
- Data Security: With robust security measures in place, OnBord ensures the safe transfer of sensitive client data and investment information.
- Automated Reminders: Our system includes features to prompt clients about incomplete information, ensuring a smoother, more complete onboarding process.
- Customizable Workflows: Tailored to your specific needs and firm requirements, OnBord adapts to your unique transition plan.
By choosing OnBord, you’re not just selecting a technology platform; you’re partnering with a team dedicated to your successful transition. Our white-glove service includes dedicated transition specialists to guide you through every step of the process.
Don’t let the complexities of transition hold you back from making the right move for your career. With OnBord, you can focus on what matters most – serving your clients and growing your business.
Ready to transform your transition process?
Schedule a demo with OnBord and discover how we can accelerate your success in your new firm. Don’t wait to take your practice to the next level – contact us today!
