FACTBOX-Some things to consider before switching firms

March 3 (Reuters) – Mindy Diamond is a retail brokerage
recruiter at Diamond Consultants in Chester, New Jersey. Here
are some tips she has for advisers who are thinking about
switching firms: (See story [ID:nN02219876)

* “Figure out what your goals are. If I’m entrepreneurial
in nature, maybe the goal is to be independent. If the goal is
to have a short-term windfall … then I need to go to another
wire-house (traditional broker). If I’m entrepreneurial to a
degree and I see the benefit of independence, but I don’t
really want to build the business, then maybe I plug into an
existing independent.”

* “A lot of people look at it as an opportunity to
streamline the book to say: ‘I’m looking to take my book
upstream, so I’m going to now have a $5 million account
minimum. So everybody below that, I’m going to divest myself
of’. It’s a good opportunity to pare down the book and make it
look the way you want it to.”

* “Any time you move, it often times means one step
backward to hopefully go many steps forward. The initial hassle
factor, the overwhelm that comes along with moving, hopefully
is outweighed by the value add. But that said, it means you are
going to work harder than you ever have before for at least the
first three months.”

* “If there’s a client who’s been on the fence with you,
and you’re suddenly asking that client to move with you, it
could be an opportunity for that client to say, ‘oh, you know
what, I was going to change anyway, go ahead without me’.”

* “The key is to speak from the point of what’s in it for
the client, not about why he did it, why it’s to his benefit,
why it’s to the firm’s benefit, not any of that.”

* “The transition packages being offered to incent adviser
movement are bigger than they’ve ever been now, and so from
that perspective, it can be a great economic windfall.”

* “It’s also about being willing to think big-picture and
long-term — that while the wire-houses are paying enormous
transition packages, you need to really do your homework and
take into account the long-term benefit of building a business
and owning a business in the independent space and decide which
in the long-run is a better fit for you.”

* “It used to be that ‘independent’ was one size fits all
… But in the last couple of years, there have been many
wonderful independent options that allow advisers to be
independent, but not have to deal with the heavy lifting of
running the business. Options that allow them to actually to
monetize in some capacity, to take some chips off the table.”

* “If an adviser is looking to go just from wire-house to
wire-house, that can be daunting and overwhelming and it’s
always good to have an agent, or a consultant or a good
recruiter working for you. But as you begin to add the
independent landscape into the menu of choices, if you will,
it’s really critical to have an agent represent your interests
to help you to streamline what can be a dizzying process.”
(Reporting by John McCrank; editing by Peter Galloway)