What You Need to Know & Helpful Tips For a Successful Transition

HERE ARE TIPS TO MAKE THAT SUCCESSFUL TRANSITION

Every financial advisor that either launches or joins an independent firm hopes to bring their entire book of business with them. But the reality is that transitions invariably result in losing at least some clients.

It’s essential that you understand and prepare for what can happen with your clients during your transition. You’ll need to know what information you can bring with you, when you can contact your current clients, and have a plan in place. Indeed, you should expect competition, but as we’ve observed with many of our independent advisor partners, it’s very possible to retain nearly all of your clients in the transition.

Lending Solutions for Transitioning Advisors
It’s imperative to identify a transition plan for your clients. Part of this plan is moving your clients’ loans to your new banking partner.

A common solution is to partner with a bank willing to refinance moving your clients’ current loans to their bank. Specialized banks can do this through a securities-based line of credit (SBLOC). These loans are offered at competitive rates based on your clients’ collateral value and other factors. A key to retaining your clients through your transition is to make it easy for them to move with you, and an SBLOC can be the perfect tool.

The truth is, transitioning firms presents great risk. It’s difficult to predict which clients will follow you and which won’t. Financial advisors with strong relationships and a track record of success for their clients are more likely to retain their clients, or at least have their former clients entertain the possibility of transitioning. However, it’s important to be clear-eyed and realistic about the risk that you’ll lose clients while making your transition decision.

Prepare for the Worst, Work Toward the Best
The reason most often cited by TriState Capital Bank’s advisor partners for making the transition to a new venture is the feeling that they can serve clients better and with greater agility without the layers and restrictions present in other business models. If you’re an advisor considering this transition, you must be 100% comfortable and committed with your decision. The more prepared you are for the transition, the more confidence you will have and the greater the likelihood that you’ll succeed.

TriState Capital Bank: Here to Help
There’s no doubt that transitions can be stressful. But they can also be exciting and create opportunities for personal and professional growth. As an advisor-centric bank, TriState Capital Bank serves as a trusted partner for thousands of wealth managers and financial advisors as they transition to joining or launching independent firms. We are a leading provider of securities-based lines of credit (SBLOCs) and can help meet refinancing requirements as you transition your clients between firms. If you’re interested in learning more about how TriState Capital can help you make a smooth and successful transition, we’re ready to help. Let’s start the conversation today.