Like anything worth doing in life, switching to a new broker dealer takes work…to be honest, a lot of work.  If making a move is on your horizon, here are some steps you can start taking now to lay the groundwork. 

  1. Research and Due Diligence – Research is essential during the pre-transition process. You need to know the rules and regulations regarding your situation as well as the answers to other relevant questions. For example, does my current firm participate in the broker protocol? You’ll also want to do some due diligence on your potential new B/D to make sure it’s a good fit for you and your book of business, as well as researching the account opening and transfer process.
  2. Information Gathering – There are likely some restrictions on information that you are allowed to bring with you to your new B/D firm. Create a spreadsheet and list the fields that you will want to fill with the information that you have and the information that you will need. After creating the spreadsheet, fill in all the information you are allowed to bring with you.
  3. Checklist and Timeline – The process of switching B/Ds can be a lengthy one, making it easy to forget or lose track of important things that need to be done before the transition occurs. In order to help stay on top of everything, it’s a good idea to create a checklist of everything that needs to get done and assign a timeline for when each task should be completed, with the timeline centered around the day you plan on leaving your current firm.
  4. E-mail/Letter Drafting – There are a few letters that you should consider composing when you’re in the pre-transition phase of the process. One should be a letter of resignation to your current firm, something short and sweet to let them know you’re moving on. You should also consider drafting a letter or e-mail to send out to all of your clients. While you will likely verbally tell many of your clients of the upcoming switch, it’s a good thing to have a well-thought-out email/letter ready to send, emphasizing why you’re switching, your new contact information, and how important your relationship is with them. The final letter you should draft is on behalf of your clients to the firm you are leaving that states that they intend to transfer their accounts and would like a copy of their recent statements.  
  5. Client Information Form – You’ve done your research and now know what information is needed to open a client account at your new firm. Stay organized by putting together a Client Information Form to make it easier to gather information. In the long run, this will make it easier to fill out client information down the road. 

If this sounds like a lot (and it is), reaching out for help right now makes sense.  3xEquity works with advisors to streamline the transition process, providing guidance, resources, and support all along the path. And the best part, our service costs you nothing. Want to know more? Click here.



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