3 Misconceptions When It Comes To Switching Firms As A Financial Advisor

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If you’re reading this, there’s a chance you’ve thought about switching financial firms at least once…or twice.

Here at Consolidated Planning, we understand how the weight of indecision can affect your practice. For several decades, we’ve helped countless financial advisors successfully transition their practice to us and wash away that indecision once and for all.

So why is there so much indecision when it comes to considering switching financial firms?

Because change, even for the better, is hard. Here we will debunk three common misconceptions when it comes to financial advisors switching firms, and how you can do your due diligence in choosing the firm that WILL support you how you want to be supported. Don’t let the fear of change hold you back any longer.


Misconception #1: New Financial Firm, Same Roadblocks

Not all firms are created equally. But, if you’ve found yourself down this road before, it might feel that way.

Taking the time and effort to seriously consider switching firms requires a great deal of self reflection and homework. Yes, homework. You need to do your research here or you’ll end up back to square one.

And time is money, especially as a financial advisor with an established practice.

So, how can you avoid the same kind of firm that you’re currently at?

  • Write down what you want in your career: Can the firm you’re interviewing with support that? If not, move on.
  • Ask the RIGHT questions as an experienced advisor: Are you choosing the best firm for your clients? Are you choosing the best firm for yourself?

At Consolidated Planning, candidates in our interview process meet with various team members to help all parties involved better gauge if we’re the right fit for you and vice versa. Alignment when it comes to planning philosophy and firm culture really matters here.


Misconception #2: Your Practice Will Lose All Its Clients

According to Cerulli Associates, approximately one-fifth (19%) of client assets, on average, are lost when advisors change firm affiliations, in addition to planned attrition.

Now, we realize that number is significant but this isn’t the case for every advisor. Sure, you WILL lose some clients when you choose to switch firms but that attrition rate is unavoidable. This natural fall off is unavoidable for a few reasons:

  • Your client is more tied to the firm than you as the advisor
  • You respectfully choose to not take the client with you

The unavoidable factors in losing clients really aren’t that significant of a loss to your practice. When you first started your practice you probably took on any client who could fog a mirror. However, as you continue to grow your practice it’s more sustainable to be selective with the clients you work with. The more ideal a client, the more scalable your practice growth is.

Even for the cases of unavoidable client losses, the specialized teams at Consolidated Planning will work with you to better define your target market and its ideal clients.

What does matter in making your switch to a new firm sustainable is – The Broker Protocol. The Broker Protocol is a set of guidelines established by major securities firms to govern the recruiting process of financial advisors. It is a mutual agreement between firms to protect the interests of both you and the firm and minimize client disruptions during the transition process.

While the broker protocol has several provisions, the most important is the “book of business” protocol, of course. This provision allows you to take your client lists with you when you move to a new firm. This is vital for advisors as it ensures you can continue to serve your existing clients and build your business at your new firm.

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Misconception #3: You Won’t Have Support In Transitioning Your Financial Advising Practice

Oftentimes advisors can feel like they’re going it alone. And that can be said for transitioning your practice and book of clients. That feeling alone can be enough to keep you from switching firms.

But, with the right firm and the right support, you can hit the ground running.

The transition and onboarding support available at Consolidated Planning is possible with Park Avenue Securities (PAS). PAS works with Consolidated Planning to ensure a successful transition for both you and your clients.

Since each financial advisor may operate differently and have varying books of business, the transition team offers a customized transition plan, covering all the necessary bases, allowing you to continue business as usual…just with a new firm.

In tandem with your onboarding team at Consolidated Planning, the transition team will be your main point of contact for all things transitional, and then some. From the time you accept an offer with us through your first 90-120 days – anything you need to do for onboarding will be addressed, handled, and carried out by the transition team.

The transition team also handles the heavy lifting of moving assets and a sense of organization for you and your clients which includes repapering and adequate licensing.

Take a sigh of relief.


Why You Should Look Past Your Concerns And Switch Financial Firms

The goal of switching firms is to have a more efficient and thriving financial advising practice, right? If that means that you have to part ways with clients that don’t fit your future…then that’s a small “price” to pay for a better practice.

So, what can you gain by not focusing on your possible attrition rate and move forward with the firm that’s right for you AND your clients?


Better Alignment, Better Growth

Finding better alignment between your personal and professional values when it comes to your firm ultimately leads to better growth in your practice.

While you work for yourself, you don’t work by yourself. The culture and values of your chosen firm will be apparent to your clients. Here’s what you may have to gain with better alignment:

  • Consistent values and goals
  • Enhanced focus on client experience
  • Efficient resource utilization
  • Collaboration and cross-selling
  • Continuous learning and development

As part of a harmonious, goal-oriented, and efficient environment, it actually becomes easier to deliver to your clients.


Future-Based Thinking

Part of the philosophy at Consolidated Planning is about providing advice for today and planning for tomorrow. As an advisor it is part of your responsibility to encourage your clients to look ahead – how will what we do today, as small as it may be, affect tomorrow?

The same goes for your career.

The decision, or lack of decision, you may have today, might not matter today but affects your tomorrow. So you better know if the firm you’re with today is prepared for the wants and needs of your clients in 5, 10 years. This might be true of:

  • Technology
  • Planning philosophies
  • Client service model
  • Support resources

Now that you’re thinking about where you stand today, where do you want to stand tomorrow?


Find A Financial Firm That Debunks These Misconceptions

It IS possible for you to continue building a thriving practice even if you switch firms. You just need a firm that removes as many roadblocks as possible for you and your clients.

Ultimately, debunking these three myths is possible when you rely on YOURSELF to find the best firm for you.

Afterall, sometimes the grass really is greener elsewhere.

If you’re ready to transition your book of clients, chat with a team member about our top advantages of switching your practice to Consolidated Planning.

Ready to talk with us?


2023-164396 Exp. 11/2025

Published:  November 9, 2023