Advisors in Transition: Are You Ready for the Jump? May 22, 2009 20090522 PDF The historic market events of the past year have a record number of advisors actively exploring alternative affiliation models.
The historic market events of the past year have a record number of advisors actively exploring alternative affiliation models. PDF
Advisors in Transition: Are You Ready for the Jump?

May 22, 2009

Transitioning to independence or a new firm can be a difficult decision for many wirehouse advisors. The historic market events over the past year have accelerated this increasing trend, and a record number of advisors today are actively exploring alternative affiliation models.

In the past, advisors who left their firms made their decisions based on how they could best serve their clients. They re-evaluated their business models and either joined or established a broker-dealer firm or registered investment advisory (RIA) practice. Today’s environment has added a new element to the decision-making process, and many advisors may now have different reasons for making a transition. It could be the result of recent reputational damage to their firm, a threat to their own client base as investors look elsewhere for different advice channels, or they may view the current market disruption as an opportunity to make a change. The question, however, remains the same—which is the best path to follow?

The route taken is largely determined by the advisors’ business strategy and the resources needed to help their clients achieve long-term financial goals. The services that will be outsourced to a reliable financial services solution provider are vital to their success. Technology, compliance and legal functions, access to a broad array of investment solutions, and practice management and operational support are all important aspects of running their businesses and must be considered when making a decision. No matter which affiliation model advisors in transition choose, an experienced partner is essential to provide the support needed to make the change.

Pershing has expanded its holistic suite of practice management solutions to help advisors make the transition to a new affiliation model seamless. Pershing’s Advisor in Transition program is a customizable solution that enables wirehouse advisors to obtain objective career transition information and key insights into business strategies. It helps wirehouse advisors address critical business decisions, including the selection of an appropriate affiliation model, corporate structure and staffing plans, and developing an appropriate operational and technology infrastructure.

Pershing recognizes that not all teams and representatives are the same, and the needs for each affiliation model are different. A successful transition won’t be determined overnight, but no matter the path taken, Pershing has the strength and versatility to provide the support advisors need to help make their transition as smooth as possible.