Tips for Transitioning Your Practice Successfully

You’re ready to break away from your current firm and launch your own RIA. Congrats! But before you make the transition, you need to do the proper research and preparation. Here’s how you can make a seamless transition while also keeping your clients happy and feeling confident.

Before the Transition…

  • Do your research. Know the rules and regulations for your specific situation. For instance, can you bring client information (names, addresses, phone numbers, email addresses, and the account titles for their investment accounts) with you? What restrictive covenants are in your contract? Also, research the account opening and transfer process of your new firm.
  • Assemble a team of professional advisors to help you with the transition. This includes lawyers, real estate agents, and other experienced professionals who can help you with any facet of the practice transition.
  • Have you chosen your new platform or custodian already? Utilize their expertise and ask them questions about the transition process. When you move your clients to a platform like Equita Financial Network, our team provides you with support and expertise so the transition goes seamlessly. Ask your custodian or platform how they can help you with the transition, such as helping with the paperwork and transfer forms.
  • Create a schedule of transition tasks. Assign a completion goal date for each task; center the timing around your proposed resignation date.
  • Write out a client conversation script. This should include why you are leaving your current firm and choosing your new one. Think of questions that your clients might ask and write down your answers.
  • Prepare the paperwork. Create a list of paperwork for initial client mailings. Draft your letter of resignation, a letter to your clients, and a letter for your clients to send to your prior firm. Create a Client Information Gathering sheet and prepare client packet materials. Equita Financial Network has templates and resources that financial advisors can use when transitioning and going independent.

During the Transition…

  • Hand in your resignation letter — and don’t burn bridges. Stay professional even if your prior firm doesn’t (e.g. disparaging you to your clients or using fear tactics so your former clients don’t leave the firm and follow you). Take the high road. It’s best for you, your career, and your clients.
  • Reach out to your former clients — but know the specific rules you need to follow when contacting clients. If they’re interested in joining you, start your game plan: Mail out client packets in groups, open new accounts or submit forms in batches, etc. Doing this in bulk will make the process more streamlined.
  • Keep everything up to date. Update your master spreadsheet every day and keep a running list of clients who haven’t returned paperwork. Send clients status updates about how the transfer is going to ease any of their worries.

Transition Your Practice with Equita’s Help

With Equita Financial Network on your side, you can move your practice smoothly. Equita helps female financial advisors pursue an independent path so they can gain more freedom and control of their career and future, get access to better career opportunities not available at their current firm, and overall boost their job satisfaction. If you’re ready to break away from your current firm and go independent, reach out to our team today. Equita provides the foundation you need to launch a solo firm successfully.

Privacy Notice

We recognize the importance of protecting our clients’ privacy. We have policies to maintain the confidentiality and security of your nonpublic personal information. The following is designed to help you understand what information we collect from you and how we use that information to serve your account.

Categories of Information We May Collect

In the normal course of business, we may collect the following types of information:

  • Information you provide in the subscription documents and other forms (including name, address, social security number, date of birth, income and other financial-related information); and
  • Data about your transactions with us (such as the types of investments you have made and your account status).

How We Use Your Information That We Collect

Any and all nonpublic personal information that we receive with respect to our clients who are natural persons is not shared with nonaffiliated third parties which are not service providers to us without prior notice to, and consent of, such clients, unless otherwise required by law. In the normal course of business, we may disclose the kinds of nonpublic personal information listed above to nonaffiliated third-party service providers involved in servicing and administering products and services on our behalf. Our service providers include, but are not limited to, our administrator, our auditors and our legal advisor. Additionally, we may disclose such nonpublic personal information as required by law (such as to respond to a subpoena) or to satisfy a request from a regulator and/or to prevent fraud. Without limiting the foregoing, we may disclose nonpublic personal information about you to governmental entities and others in connection with meeting our obligations to prevent money laundering including, without limitation, the disclosure that may be required by the Uniting and Strengthening America Act by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 and the regulations promulgated thereunder. In addition, if we choose to dispose of our clients’ nonpublic personal information that we are not legally bound to maintain, we will do so in a manner that reasonably protects such information from unauthorized access. The same privacy policy also applies to former clients who are natural persons.

Confidentiality and Security

We restrict access to nonpublic personal information about our clients to those employees and agents who need to know that information to provide products and services to our clients. We maintain physical, electronic and procedural safeguards to protect our clients’ nonpublic personal information. We respect and value that you have entrusted us with your private financial information, and we will work diligently to maintain that trust. We are committed to preserving that trust by respecting your privacy as provided herein.