By Sydney LeBlanc

Editor’s Note: I had the pleasure of speaking with Heidi Wheatley, Director of Marketing for Atlanta-based JP Turner & Company about the challenges of client communication when transitioning. She and the transition team provided great information about transitioning and answered some important questions that you may receive from clients before you make your move. Heidi is responsible for all firm brand development and management, internal and external communications and creating marketing solutions for the company’s independent branch offices.

Transitioning your business is an exciting time and signals a fresh start. There are many key steps involved in successfully moving your business and one of the most critical is your ability to effectively communicate your move to your clients and provide them with a seamless transition process. Most clients are doing business with you because of the relationship you’ve built over the years. You’ve earned their trust and confidence and, if asked, most of your clients would say they are happy with your performance as an advisor. That’s why your move could come as a surprise to them.

You know that in order to better service client accounts you need more back office support from your home office, access to a wider range of products and feel less sales pressure, but your clients don’t necessarily understand how your relationship with the broker-dealer affects them. That is why it is so important to take the time to meet with, call, or write your clients to explain your decision to change firms.

There are regulatory guidelines associated with how and when you can contact your clients. Advisors must be registered by FINRA, the state where their office is located and in states where their clients reside before transfer documents can be sent to clients.

During the transition process, clients often have similar questions and communicating information about the transfer process proactively can help reduce any anxiety your clients may have. Below are the most common client questions, and their responses, the transition team at J.P. Turner & Company, an independent brokerage firm and investment bank headquartered in Atlanta, assist transitioning reps in answering.

Client: What is my role in this process and is it time consuming?

“It is important to reinforce that your client’s only responsibility during your transition is to complete and return their account transfer documents,” stated Lois Cohen, transitions manager at J.P. Turner. “When clients understand their role in transferring their account it makes it easier for you to get them on board.”

Client: If I receive regular dividends or distributions, will I receive my payment according to plan?

“We encourage reps to make sure those clients receiving dividend or distribution payments are the first to transfer over,” said Al Pierantozzi, national sales manager for the firm.  “Advisors should work closely with those clients to ensure their Automated Customer Account Transfer System (ACATS) form is completed and received in a timely manner to avoid interruption of payments.”

Clients: Will I receive my statements on time?

“As soon as the ACATS are submitted your clients should begin receiving statements from the new broker-dealer,” said Cohen.

Client: Are the products I’m currently invested in available through the new firm?

“Before you join a firm, check with your recruiter to learn if the products your clients are invested in are available,” recommends Pierantozzi. “If they aren’t, find out what the process is to have them approved. If your new firm won’t approve a specific product you can either identify a similar product to move your clients into (and communicate that to them up front) or continue your search.”

Client:  Can I still access my account online?

“Again, it is important to ask this information up front. If your clients currently have online account access you need to ensure your new firm can offer that as well and learn the process for granting your clients access so you can explain it to them,” said Pierantozzi.

Now that you can answer some frequently asked questions, you need to communicate your move to your clients (remember that there are regulatory guidelines that must be followed – ask your transition manager for guidance). In your communications, always emphasize what’s in it for your client by selling the benefits of your new firm in a way that’s meaningful to them. Cohen provided suggestions for announcing your move to your clients.

Announcing Your Move

Talk to your new broker/dealer’s transition manager. Your transition manager is a tremendous resource for everything associated with your move, including communicating with your clients. “Most firms have pre-approved materials that discuss your move, provide background on the firm and outline the process of moving over client accounts,” said Cohen. “This saves you from having to create materials from scratch.”

Make sure it’s all about them. “Don’t focus on ‘what’s in it for you’ – focus on why the move will be beneficial for your clients,” commented Cohen. “For example, how will better back office support enhance the service you provide them?  This also provides you with a great opportunity to reconnect with clients to discuss life changes and explain how the products and services provided by your new broker-dealer can help them achieve their investment goals.”

Make a list of your top clients and personally call and/or meet with each of them. “For most clients’ the relationship is with the advisor, not the firm,” said Cohen. “Effectively explaining your move and the process of transitioning their account will help you ensure the majority of your clients move with you.”

Host an open house. “Some of our advisors choose to go a step further and hold an open house for their clients,” said Cohen. “This provides an opportunity to thank them for their continued business, celebrate the move, answer questions and showcase your new firm.” It can also save you valuable time. “Being able to meet with five or 10 clients at once increases your efficiency,” remarked Cohen.

“At the end of the day, good advisors know that their move cannot solely be in their best interest; their clients must benefit as well,” said Cohen.  “If you’ve spent your time wisely and created strong relationships with your clients, they will move with you.”

J.P. Turner & Company, LLC is a full-service independent and securities brokerage and investment banking firm headquartered in Atlanta with approximately 176 branch offices nationwide. Its affiliate company, J.P. Turner & Company Capital Management, LLC, offers investment planning and advisory services. For additional information on J.P. Turner & Company visit www.joinjpturner.com For information on J.P. Turner & Company Capital Management visit www.jpturnercm.com