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They say the secret to a successful life is to picture your funeral and work backward. The idea is that you’ll have the lessons of a full lifetime and the chance to make changes if things don’t look or feel right.
The same principle applies when choosing to move to a new broker-dealer. Although your hope should be finding your “last” broker-dealer when moving, the truth is circumstances change, and somewhere down the road, you might want or need to move. How that BD typically handles departures should be just one factor you consider when joining.
Some broker-dealers can appear tenacious to the point of being spiteful when an advisor wants to leave. A quick look at AdvisorHub almost every week reveals a story of some BD chasing an advisor with legal papers in hand, making accusations about client data.
Although some of this may be warranted (the rules on customer data an advisor is allowed to take with them are very clear—and brief), a certain amount feels like making a lot of noise to scare other advisors away from leaving the firm out of fear of similar retaliation.
A lawsuit and/or threat of legal action is never fun, even when the laws are in your favor. They are a distraction from your goals and tend to burn the last bit of any positive bridges that have been built.
Quick note: Just because a BD’s lawyers come knocking doesn’t mean they are right or will always win. There are ample examples where an advisor has proven they were in the right.
Navigating a transition comes with a unique set of challenges. Working with a consultant like 3xEquity provides significant advantages. Each year, hundreds of advisors leverage our expertise and proven processes to secure multiple offers, identify real opportunities, and transition efficiently and effectively. If you are curious about a move to a new broker-dealer, get started right now at 3xEquity.com.
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