Insights | 04.07.21
Switching Firms Can Cost Advisors 19 Percent of Assets: Cerulli
According to research by Cerulli Associates, 19 percent of client assets are lost when advisors switch firm affiliations. Advisors said the ability to increase financial value and more independence was their main reason for changing firms. However, there are risks in doing so. Advisors said their primary challenges when switching firms was learning new systems and losing revenue doing the transition process. Cerulli’s Michael Rose says, “Unplanned client attrition is a significant concern among advisors, particularly those who consider breaking away to an independent channel. It is critical that advisors perform an honest self-assessment of the strength of their client relationships, and the share of their client base that could be at risk as a result of breaking away.”
Read the full article on InvestmentNews.