Financial advisors hesitant to leave their existing firms often cite one reason: repapering. The paperwork required to move clients from an old broker-dealer to a new one has long been perceived as a significant hurdle. Advisors feared the process would overwhelm clients or make the transition appear more disruptive than it truly is. These fears have fueled a narrative that repapering is an insurmountable barrier to making a move.
But a recent Reddit discussion in the Certified Financial Planners (CFP) subreddit suggests otherwise. Advisors openly shared their experiences, and the consensus was clear: repapering—while not without challenges—is far easier than many expect. Let’s explore some of the highlights from that thread and what they mean for advisors considering a transition.
Advisors Share Their Stories
One Redditor, “crzypck,” shared their journey transitioning to Schwab as a Registered Investment Advisor (RIA). Despite initial apprehensions, they were surprised at how efficiently Schwab handled the process:
“Schwab does indeed have an entire team to help. They created all the DocuSign packets for our clients who wanted electronic, and mailed boxes of physical paperwork to our office for clients who wanted hard copies. They genuinely did the bulk of the heavy lifting…it went smoother than I’d expected.”
Another commenter, “General-Ad3712,” reported repapering over 120 households in just a month with the help of two staff members, adding:
“We’re moving again (fully RIA) and staying at the same custodians this time. The first repapering was worth every ounce of effort.”
Even for larger practices, repapering is often manageable. User “Shantomette” noted:
“I’ve done a full repaper and also a tape-to-tape transfer. T2T is obviously much easier, but a full repaper would be worth it to me if you are talking independence.”
Technology Transforms the Process
These real-world experiences align with broader industry trends. Advances in technology have made repapering faster, more accurate, and less stressful for advisors and their clients. Firms now deploy “SWAT teams” to assist with transitions, handling data entry, document preparation, and client follow-ups. This has significantly reduced the administrative burden on advisors.
Chris Stacey, COO of 3xEquity, highlights the dramatic shift:
“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.”
Why Advisors Say Repapering Is Worth It
Beyond logistical improvements, advisors point out that repapering offers hidden benefits. Reddit user “Calm-Wealth-2659” noted:
“It gives you an opportunity to cut out some clients at the bottom of your tier that you wouldn’t be taking on if they were new clients today. Frees up time in the long term to get new clients at higher AUM.”
This sentiment aligns with findings from a recent 3xEquity survey, where 70% of advisors reported moving 70% or more of their assets under management (AUM) within the first few months after a transition. Even more compelling, a Fidelity study revealed that 80% of advisors who transitioned to a new broker-dealer actually increased their AUM compared to their old firm.
Overcoming the Fear Factor
Repapering may still seem daunting for some advisors, but the reality is far less intimidating than the myths surrounding it. As Redditor “KittenMcnugget123” observed:
“The hard part is getting everyone on the line and to actually sign the new paperwork in a timely fashion, not completing the forms themselves.”
Advisors are also finding that clients are more loyal to them than to their firms. Stacey reminds advisors:
“Clients have a relationship with their advisor, not the broker-dealer. As long as you communicate effectively, most clients will follow you without hesitation.”
A Whimsical World of Usernames
Of course, no Reddit discussion would be complete without the charmingly off-the-wall usernames. Advisors and most users prefer anonymity on the platform, which often leads to whimsical monikers that reflect a desire for levity outside their everyday lives. Don’t judge a book by its cover. Who knows? “KittenMcnugget123” might just be a Barron’s Top Advisor.
The Bottom Line
Repapering’s bark is indeed worse than its bite. The Reddit thread—brimming with firsthand accounts—shows that technology, supportive transition teams, and client loyalty have made the process less daunting and more rewarding. For advisors weighing the benefits of a transition, the fear of repapering should no longer be a dealbreaker.
If you’re considering a move and want to explore your options anonymously, 3xEquity’s “Secure My Offer” tool is here to help. It’s never been easier to embrace self-determination and prioritize what’s best for you and your clients.