Imagination – and Legal Counsel – Helps Advisors Move to A New Firm

Posted on November 23rd, 2014 at 3:03 PM

From the Desk of Jim Eccleston at Eccleston Law Offices:

A recent InvestmentNews article discusses why financial advisers, who are planning to move to a new firm, should adopt a creative visualization to make it happen.  Generally, there are four stages.

First, advisors should review a printout of their clients ranked either by gross commissions or by assets under management and then consider, “Do they like you?”, “Are you in regular communication with them?”, and “Do they think you are highly replaceable?” Normally, at least 80% of desired clients can be transported successfully with advisors to new firm. This technique also can help advisors identify problems in client relationships and become more aware of issues with non-transportable products like stand-alone hedge funds and private equity.

Second, advisors, who know that their client relationships are solid, next can imagine themselves telling clients that they've moved to a new firm. Go down your client list slowly and visualize different responses of clients as they respond to your decision to change firms.

Third, by using affirmations (a declaration of good things that we can realistically expect to occur) like “my clients value my advice and will surely join me at my new firm”, “I may lose some clients in a move but the ones who really matter to me are coming”, advisors effectively can improve their confidence.

The fourth step recommended is more concrete: prepare a letter of resignation for the branch manager. Here, we take issue with the article because it fails to mention that securing competent legal counsel is a must. Retaining counsel truly is a no-brainer: reps making a career decision and moving tens if not hundreds of millions of dollars of client assets need competent securities law counsel to protect their investors.

In conclusion, visualized techniques – and legal counsel – can help advisors be more prepared, more confident and more protected in their moves.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Investment News, Advisors

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

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