Financial advisors who have been hesitant to leave their existing firms to pursue better opportunities elsewhere often site one reason: repapering. The paperwork required to move clients from the old broker-dealer to a new one has long been perceived as a significant hurdle. Advisors feared that the process would be too onerous for some clients, or worse, that clients might perceive the transfer as a bigger deal than it really is due to all the red tape. These fears fueled a narrative suggesting that repapering was a substantial barrier to making a move. 

Recent developments are challenging these long-held beliefs that moving assets is hard. AdvisorHub recently reported on three advisor transitions where the ink was barely dry on the new firm’s forms before the decision was made to move again. One advisor team moved just two months after joining a new firm, another only four months into their tenure, and a third after six months—a comparatively lengthy stay. If you’ve been concerned about repapering your clients even once, imagine the confidence needed to ask them to do it twice in just two months!

These quick moves, once unheard of, are becoming increasingly common. According to Chris Stacey, COO of 3xEquity, the industry leader in facilitating advisor transitions, this trend reflects the impact of emerging technology. AdvisorHub noted that this phenomenon has become “a relatively routine occurrence,” underscoring how technology has dramatically simplified the repapering process.

In a recent survey conducted by 3XEquity, 70% of advisors reported moving 70% or more of their assets under management (AUM) within the first few months after a transition. Even more compellingly, a Fidelity study revealed that 80% of advisors who transitioned to a new broker-dealer actually increased their AUM compared to their old firm.

“The process of repapering used to be such a daunting prospect for firms,” Stacey explained. “Advisors believed that their assets wouldn’t move with them when they went to a new broker-dealer because of the repapering process. However, the technology for transitioning assets has improved significantly, and BDs now have “SWAT teams” that roll in and handle every aspect of the situation with skill and urgency. It’s been a dramatic change that has truly benefited advisors.”

This is true even in extreme circumstances, like those mentioned above, where transitions occurred just months apart. Stacey also emphasized that advisors should remember that their clients “have a relationship with them, not the broker-dealer.”

With this new trend and other tools, such as 3XEquity’s anonymous “Secure My Offer” capability, advisors are now freer than ever to embrace self-determination and do what is best not only for their clients but also for themselves. The fear of repapering, once a significant barrier, is increasingly proving to be less daunting than anticipated—its bark truly worse than its bite.