A quote from David Canter (head of Fidelity Institutional’s RIA segment) in a recent AdvisorHub story, brought up an odd upside to the stay-at-home orders impacting the country. Advisors looking to move broker-dealers might want to consider it when thinking about their timeline.
Canter noted, “Several advisors who have made a break [found] it was easier to reach their clients because of the remote environment and that factor, in combination with the digital tools available to them, made the process more efficient.”
The “process” Canter is talking about is moving assets after a transition. In the past advisors have found one of the biggest challenges is tracking down their clients. Well , Americans have been sticking close to home more now than any other time in modern history.
For many advisors, confidence in their ability to move their hard-won assets is one of the first checkboxes they must ponder when considering a move. In our own recent survey of advisors (click here to download) who had recently transitioned to a new broker-dealer, 79% of advisors were very certain or certain they would transfer 70% of their AUM to their new BD.
With the country opening up the window may be narrowing, but more and more companies are opting to allow their employees to work-from-home on a more permanent basis. Some, like tech giants Twitter and Square have given employees permission to keep working remotely. Their influence is likely to spread into other industries as well. So – the good news could be extended and advisors who have transitioned may continue to find it easier to connect with, and ultimately transfer over their existing clients to their new BD.