According to Fidelity, there are five stages to making a move, which takes an advisor about 10 months to move through. They include:

Information gathering. Advisors are influenced to move primarily by former colleagues, other advisors, family, clients and recruiters, and when gathering information about potential new firms, advisors turned to home office visits, firm websites, general industry publications, reports and conferences.
Consideration. Advisors then weigh pros and cons of making a move. Since the onset of the pandemic, compensation and better opportunities to grow business have become the primary motivators for making a move.
Making the move. Advisors most often switched to an independent BD, followed by a hybrid RIA or independent RIA and were supported with legal/compliance support, transitional, or operational support from clearing firms/custodians and third parties. More than half of advisors had a formal transition plan in place that included repaparing, account transitions, compliance, technology and fee model/structure considerations.
Benefits of the move. Nearly all advisors surveyed who had made a move reported that they are happy with their decision for both economic and emotional reasons. In addition, nearly all advisors said their clients were supportive despite some initial concerns.
Reflection. Advisors report that their initial concerns were often not realized and they are seeing on average 30 percent asset growth post switch. About one-third say they wish they had made a move sooner, said Fidelity.

The pandemic uncovered some new perspectives. For instance, advisors said a firm's performance during the pandemic is now a critical factor in their decision-making process, and many are taking a close look at whether a firm they are considering has the digital tools to facilitate remote work. Advisors were also concerned that making a move during the pandemic would distress their clients.

Instant Insights /

Advisors considering a move look for better compensation amid pandemic

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