Financial Advisors, Transitioning To A New Broker Dealer Is Easier Than It Used To Be!

Today, I wanted to chat a little bit about the transition process for financial advisors. And I wanted to give a little background on the transition process and what advisors can expect. And for advisors that haven’t transitioned in awhile, the bad news is that There are no more block transfers, haven’t been block transfers for a very long time. So the old school way of just moving a book of business in a block is really gone, except for in situations where a firm goes out of business or sometimes when a firm sells. But the good news, which in our industry, there hasn’t been a ton of good news for advisors over the years with increased regulation and consolidation, so many negative changes, if you will, for advisors. The good news is that the transition process has gotten easier for the firms that have elected to bring on new technology or the advisors that are transitioning to them. And I want to preface that with saying, the transition is not one size fits all. And it’s something really important for advisors to explore when they’re looking at different broker dealers to join.

So in the transition process or in the due diligence phase, I should say, an advisor really needs to look at it in two sections. One is the internal transition person or team that’s going to be their resource to move over to the new company. Those people will typically be folks that are working on your licensing, your registration, your fingerprints, all the stuff in the background of your business that needs to change and move over to the new firm. The The other component of the transition is really what I wanted to focus on today, and that is the technology that some firms are now using to export your client data and merge it into the forms that are needed for the paperwork part of your process. Now, not every firm is leveraging outside tools and technology for their process because candidly, it’s expensive. So when you’re talking about the transition with a potential financial firm, make sure you understand the resources that are internally going to be at your disposal, but also ask them questions about whether they use a company like Docupace, DocuSign, that can work with your client data and merge it into the forms that are needed so that your clients can electronically sign the documentation.

Because when those resources are provided to you, it makes the process so much easier. And it’s just an invaluable tool to make sure that your clients move over in a timely manner. So a lot of due diligence is needed. Ask all the right questions. Make sure you talk to advisors that have recently transitioned over to any firm that you’re thinking about considering. And if you have any additional questions, give us a call. We would love to chat with you.


Jodie Papike

Jodie Papike is the CEO & Managing Partner of Cross-Search, the first third-party, independent broker dealer advisor and executive placement firm. Since joining Cross-Search in 1997, Jodie has been consulting with financial advisors transitioning to new independent broker dealers, guiding them through the entire process of identifying their most appropriate options, negotiating a deal and transitioning clients. Jodie has an intricate knowledge of the securities industry and a deep understanding of each of the major independent broker dealer firms, enabling her to help advisors find and transition to a broker-dealer that best suits their needs. Cross Search has placed thousands of advisors, producing more than 375 mill. in gross dealer concessions. Jodie takes the utmost pride in finding a firm for an advisor that will not only better their career, but will also be a good home for them for years to come. Jodie is a frequent speaker at industry conferences, is regularly quoted and published in publications such as Investment News, Registered Rep, Financial Planning, Life Insurance Selling and Advisor One. Jodie earned a Bachelor of Arts degree from San Diego State, graduating with honors.