Is Your Brokerage Failing to Meet Your Expectations?

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In this article, we discuss why financial advisors are looking to transition now and how an attorney can help you make a transition that leads to a more successful future in the industry.

Heightened Activity

Our firm has received a large number of financial advisor transition cases in the past year. Our clients have hired us to make the transition as smooth as possible. We continue to make the process as simple and easy as possible for our clients.

We have seen many clients struggle with their firm over the past few years. Our clients find that their firms are not meeting their expectations for a number of reasons.

Changes in Communication

Since the pandemic began in early 2020, there are many brokerage firms that have been attempting to restrict their advisors from past activity that has made them successful. For instance, InvestmentNews reports that some firms are communicating with their clients directly rather than directing their advisors to do so. This has aggravated advisors at firms such as Merrill Lynch, a division of Bank of America that has seen a large number of transitions in the past year.

Client Retention

Similarly, Bank of America has reportedly changed how it handles the transition process for its Merrill advisors. InvestmentNews finds that Bank of America deploys “client retention teams” that are attempting to limit advisors from taking clients with them as they leave Merrill. This frustrates advisors that have personal relationships with clients and potentially limits them from taking clients to their new firms.

Limiting Risk

Brokerage firms may also attempt to limit an advisor’s ability to think and act independently. While it is reasonable for firms to limit risk, it also concerns advisors when they are pigeonholed into an approach that they do not personally adopt. This has also likely led to many transitions in recent times, as the markets surpass all-time highs and worldwide economic conditions continue to be uncertain in the near future.

Let Us Represent You

These are just some of the many ways that advisors are fed up with their firms. If you are considering a transition from your current brokerage firm to another, check out last week’s article about how financial advisors must transition from their current firm to another firm the right way.

For more information, please call us at 239-319-4434 or complete a contact form to discuss your options. Vernon Litigation Group works with financial advisors throughout the country to make their transition as smoothly as possible.