The demise of First Republic has given rise to an interesting question…are concerns over repapering overblown?
For decades, advisors have been hesitant to leave their existing firms to pursue better opportunities for one simple reason – repapering.
They worried the required paperwork to bring their clients with them would be too onerous for some clients. Or maybe the clients would perceive the transfer as a bigger deal than it is because of all the red tape and choose not to follow the advisor. There were many narratives, all of which suggested that repapering was a big barrier to pursuing a better opportunity.
We’re wondering if that perception is outdated now in light of the end of First Republic. Why? Well, AdvisorHub recently reported on three moves where the ink was barely dry on forms when the decision was made to move again. One move took place 2 months after joining the firm, another just 4 months into their tenure. And one more team moved after 6 months which feels settled compared to the above two. If you’ve been concerned about repapering your clients once in their history with you, imagine feeling confident asking them to do this twice in just 2 months!
AdvisorHub noted that the trend has become “a relatively routine occurrence. That’s a reflection of emerging technology, according to Chris Stacey, the COO of 3XEquity, the industry leader in facilitating advisor transitions.
“The process of repapering used to be such a daunting prospect for firms,” Stacey said. “Advisors believed that their assets won’t move with them when they go to a new BD because the process of repapering. But the technology for transitioning assets has improved greatly 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.”
This is true even in extreme circumstances, like the ones above, where the transitions are just months apart.
Stacey went on to suggest that advisors remember that their clients “have a relationship with them, not the broker-dealer.”
With this new trend and other tools, like 3xEquity’s anonymous “Secure My Offer” capability, advisors are freer than ever to embrace self-determination and do what is best, not only for their clients, but for themselves.