6 min
15 Things You Can’t Afford To Overlook When Considering A Move To A New Broker-Dealer AdvisorTrends - The 3xEquity Podcast
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Learn more at 3xequity.com/qs
15 Things You Can’t Afford To Overlook When Considering A Move To A New Broker-Dealer
1. Who Owns the Client: The Advisor or the Broker-Dealer?
Understanding client ownership is crucial. If the broker-dealer owns the client relationships, transitioning away in the future might be more complicated. Ensure you have clarity on this to maintain control over your book of business.
2. When Was the Last Time the Broker-Dealer Changed the FA Compensation Plan?
Frequent changes to the compensation plan can indicate instability and affect your income. Investigate the history and frequency of these changes to ensure your financial stability.
3. How Many Practices Did the Broker-Dealer Bring In Over the Past Year?
A broker-dealer that successfully attracts and retains numerous practices may indicate a supportive environment. However, delve into why those practices moved and how well they have integrated.
4. How Successful Have Prior FAs Been in Bringing Over Their Assets to the New Broker-Dealer?
The ability of financial advisors to transfer the majority of their assets can speak volumes about the broker-dealer’s support and the ease of transition. This metric is vital for assessing potential disruptions to your business.
5. How Long Has the Current CEO Been in Their Position?
Stability in leadership often translates to stability within the company. A long-tenured CEO may indicate consistent vision and strategy, which can be beneficial for your long-term plans.
6. What Was the Most Recent Enhancement the Broker-Dealer Made to Improve the FA Platform?
Continuous improvement of the FA platform suggests a commitment to providing advisors with the best tools and resources. Look for tangible improvements that can directly benefit your practice.
7. Has There Been a Recent Platform Improvement for Clients?
Client-facing improvements can enhance your service offering and client satisfaction. Ask about recent upgrades and how they impact the client experience.
Learn more at 3xequity.com/qs
15 Things You Can’t Afford To Overlook When Considering A Move To A New Broker-Dealer
1. Who Owns the Client: The Advisor or the Broker-Dealer?
Understanding client ownership is crucial. If the broker-dealer owns the client relationships, transitioning away in the future might be more complicated. Ensure you have clarity on this to maintain control over your book of business.
2. When Was the Last Time the Broker-Dealer Changed the FA Compensation Plan?
Frequent changes to the compensation plan can indicate instability and affect your income. Investigate the history and frequency of these changes to ensure your financial stability.
3. How Many Practices Did the Broker-Dealer Bring In Over the Past Year?
A broker-dealer that successfully attracts and retains numerous practices may indicate a supportive environment. However, delve into why those practices moved and how well they have integrated.
4. How Successful Have Prior FAs Been in Bringing Over Their Assets to the New Broker-Dealer?
The ability of financial advisors to transfer the majority of their assets can speak volumes about the broker-dealer’s support and the ease of transition. This metric is vital for assessing potential disruptions to your business.
5. How Long Has the Current CEO Been in Their Position?
Stability in leadership often translates to stability within the company. A long-tenured CEO may indicate consistent vision and strategy, which can be beneficial for your long-term plans.
6. What Was the Most Recent Enhancement the Broker-Dealer Made to Improve the FA Platform?
Continuous improvement of the FA platform suggests a commitment to providing advisors with the best tools and resources. Look for tangible improvements that can directly benefit your practice.
7. Has There Been a Recent Platform Improvement for Clients?
Client-facing improvements can enhance your service offering and client satisfaction. Ask about recent upgrades and how they impact the client experience.
6 min