Displaying items by tag: client management

The U.S. wealth management industry enters 2025 with strong fundamentals and surging demand for advice as Americans accumulate more wealth and face increasingly complex financial decisions. Over the past decade, revenue from fee-based advisory relationships has grown significantly, and the number of human-advised relationships is projected to rise by as much as 34% by 2034. 

However, a looming shortage of advisors—an estimated gap of 100,000 by 2034—threatens the industry’s ability to keep pace, prompting firms to modernize operating models, leverage AI for productivity, and intensify recruitment efforts. Amid this talent crunch, advisor transitions will become more common, and ensuring continuity in client service will hinge on robust recordkeeping practices, including detailed CRM usage and clear documentation of financial plans and client preferences. 

Properly managed data is not just a regulatory requirement—it also allows new advisors to step in seamlessly and sustain trust when client relationships change hands. As firms evolve, the combination of human guidance, well-preserved institutional knowledge, and tech-driven scalability will be critical to supporting the next generation of clients.

Finsum: Leveraging technology to optimize your transition will be key for both new advisors and clients. 

When an advisor leaves and their accounts are reassigned to you, the transition requires sensitivity, strategy, and respect for the client relationship that preceded you. These clients may have had deep trust in their former advisor, and any attempt to immediately assert control or change how things are done can damage the relationship before it begins. 

Instead of declaring, “You’re my client now,” approach them as if they were newly referred—someone you're hoping to earn, not inherit. Start by learning as much as possible about the client’s history, goals, and preferences, using CRM notes and internal records to guide your outreach. 

By demonstrating empathy, professionalism, and a genuine interest in the client’s well-being, you can build trust over time and help ensure they choose to stay with the firm—not because they have to, but because they want to.

Finsum: In your first meeting, listen more than you speak, focus on continuity, and resist any urge to immediately pitch new products.

When evaluating a potential move to a new broker-dealer, it’s important to clarify key factors that will impact your control, income stability, and long-term success. 

1. For instance, understanding who owns the client relationships affects your future ability to manage your book of business. 
2. Frequent changes to the financial advisor compensation plan may signal instability, so reviewing their track record can help protect your income. 
3. Investigate how many practices the broker-dealer has attracted recently and why, as this reflects both its appeal and integration support. 
4. Assess how successful previous advisors have been at transferring their assets, since this can impact your business continuity. 
5. Leadership matters too—long-tenured CEOs often point to organizational stability and a consistent vision. 

Finsum: Also, recent enhancements to the advisor platform to see whether the broker-dealer is investing in tools that will genuinely support and grow your practice.

While it’s often said that changing broker-dealers results in losing 30% of your client book, the actual retention rate depends heavily on where you're leaving from, where you're going, and how the transition is handled. Advisors moving from banks to independence often do face steeper losses, due to legal and structural barriers, while those shifting between independent broker-dealers typically experience much smaller attrition. 

The key to maintaining client loyalty lies in how the move is communicated—clients are more likely to stay if they understand how the switch benefits them, not just the advisor. Advisors should frame the conversation around enhanced service offerings, broader product access, reduced fees, or improved technology and stability. 

A real-world example saw one advisor retain 98% of clients by clearly articulating these benefits during a move from a failing firm to a more robust platform. 

Finsum: Ultimately, when advisors lead with client-first messaging, transitions can not only preserve but even grow their practice.

Switching broker-dealers is a complex process, but with the right approach, it can be a transformative step for an advisor’s business.

• Legal considerations should be the first priority, as non-compete clauses and client ownership agreements can create hurdles if not addressed properly. 
• Developing a detailed transition plan at least 90 days in advance is essential, ensuring advisors understand which accounts can move, which will remain, and how client data can be organized legally. 
• Engaging staff early in the process prevents last-minute chaos and helps distribute responsibilities effectively. 
• Advisors should also consider client communication strategies, ensuring a seamless transition that reassures clients and maintains trust. 

Finsum: Ultimately, a well-executed move can enhance an advisor’s ability to serve clients while positioning their practice for long-term growth.