Advisor transitions are never easy, even if they occur for the best reasons. Clients may feel concerned about having their accounts change hands, and other team members may struggle adjusting to portfolios they are unfamiliar with. The prevalence of mergers, acquisitions, retirements, and career advancement opportunities means that advisor transitions will happen even within the most stable firms.

The process of losing and gaining new advisors requires careful planning, communication, and a robust operational framework to ensure as seamless a transition as possible. Luckily, there are several best practices and strategic approaches firms can follow that help guide managers, advisors, and clients through the ups and downs of change. Here are three ways wealth management firms can streamline advisor transitions.

Create proactive advisor transition strategies
Developing a clear-cut strategic plan is a great first step in navigating advisor transitions. Although each firm’s plan of attack will be different, some helpful elements to include are the following:

• Clear communication strategies between the outgoing advisor, incoming advisor, and impacted clients.
• Relationship management procedures for addressing and escalating client concerns.
• Operational steps that ensure the swift removal of the departing advisor from firm platforms, providing access to relevant accounts for new advisors, and any managerial checks that need to happen as a result.
• Proper adherence to government regulations and compliance requirements.
• Consideration of any marketing or promotional campaigns that may need adjustment because of the transition (i.e., materials that include the contact information of the departing advisor).
• Education and training resources for both new advisors and impacted clients about what they can expect moving forward.
• A realistic timeline of expected milestones within the transition plan.

Defining and documenting all transition procedures into one easy-to-follow plan provides a strong foundation for a streamlined transition process. It is important to note that the plan should remain adjustable depending on the circumstances of the transition. Transitions caused because of upcoming retirements, recruitment efforts, and internal reassignments are all slightly different situations and should be treated as such on a strategic level.

Empower back office staff to support advisor transitions
Although preparing clients and incoming advisors for impending transitions is important, it should not be the only focus of wealth management firms working to streamline transitions. Coordinating internal resources and empowering back office staff is just as critical as making sure the more client-visible pieces of the investment process are lined up.

Practicing due diligence in making sure client information is right in document management systems is a critical step in setting up new advisors for success. Managers should conduct comprehensive account reviews and ensure that any potential conflicts of interest are mitigated. Assessing existing investment strategies and verifying that sensitive client information is well protected are also best practices to follow during any major organisational change within the firm.

The transition period is a good opportunity to evaluate operational infrastructure for any gaps or weaknesses nefarious actors could exploit. Managers should also determine if the firm’s systems and procedures can support a potential increase in workload — particularly as new advisors get acquainted with existing clientele — on a realistic basis. As critical players in the wealth management sector, back office staff can help train new advisors on processes specific to the firm. This extra attention on office personnel and clerical support teams can ensure fluid transitions in areas that are outside advisor control yet still strongly contribute to the overall client experience.

Invest in document management software to make transitions smoother
Streamlining advisor transitions is made much easier with the help of powerful, cloud-based platforms. Leveraging the latest in financial management technology can greatly simplify the transfer of client data, get new advisors up to speed on accounts more quickly, and smooth the transition process for clients.

Solutions like Docupace help free up valuable advisor and back office staff time to focus on building relationships with clients. Inputting new and updating existing client data can be completed more efficiently and accurately. Similarly, advisors transitioning into new client accounts will not need to worry about staying compliant with complex federal and industry regulations. Docupace can standardise common processes needed for firm compliance and make information more secure while doing it.

If you are interested in how Docupace can help your firm navigate advisor transitions, contact us to set up a meeting today.

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