Most Clients Followed FAs to Their New Firms Amid the Pandemic: Recruiter

By Mrinalini Krishna October 26, 2020

Advisors who switched firms during the first six months of the Covid-19 pandemic saw greater success in taking their clients with them, recruiters said last week.

“We’ve seen the actual the success rate of their client transitions increase to, I’ll just say, near 100%,” according to Frank LaRosa, founder and CEO of Moorestown, N.J.-based Elite Consulting Partners.

“The clients don’t want to get to know a new financial advisor and the inheriting financial advisor can’t really go out and meet the client,” he said last week at Cetera Financial’s Connect@Home conference.

Transferring client assets was also easier for advisors who switched firms these past months, according to Jeff Nash, CEO of consulting firm Bridgemark Strategies.

With clients working from home and able to access and sign documents more easily, the turnaround time for the transfer of assets shrunk, Nash said at the same conference.

“It’s not only a higher percentage of the asset retention, it’s also faster movements on those assets. Where we might have seen three to six months, we’re seeing it in 30 to 60 days,” Nash said.

The technology available to speed up the transfer of assets benefited the departing advisors and the firms they were joining, according to both recruiters.

Advisors who have embraced technology that enables them to function during the pandemic are “exploding with assets,” LaRosa added.

LaRosa said advisors should continue incorporating and advancing their technology, whether they’re working from home or in offices.

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