Transitioning Clients When Changing RIAs

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There are many moving parts involved in switching firms as a registered investment advisor. While you might be focused on the legal steps or technology setup, your clients are likely thinking about how this will affect them. 

You must approach the transition with a transparent plan prioritizing communication, preparation, and follow-through. According to a May 2024 Supported Independence Study, client retention rates during transitions to independence are at 86%¹.

Below, we’ll go through the steps so that you can easily navigate a firm transition.

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Understand the Legal Framework Before You Move

Before you begin planning your move, it’s important to understand what you can and can’t do legally. Your current employment agreement and the industry’s transition rules affect what information you take, how you notify clients, and when you can reach out. Here’s what to know:

Broker Protocol and Employer Agreements

The Broker Protocol is a set of guidelines outlining what client information you can bring when changing firms. If both your current and future firms are part of the protocol, you’re generally allowed to take five key pieces of client information: 

• Name
• Address
• Phone number
• Email address
• Account title²

However, not all firms are members, and protocol rules don’t override your employment contract. It’s important to review your agreement carefully. Pay close attention to any non-solicitation, non-compete, or confidentiality clauses. These may limit your ability to contact clients after you leave or use certain data types, even if you follow Broker Protocol rules.

Regulatory Considerations for Multi-State Moves

If you’re moving your practice to a different state or are working virtually across multiple states, you might need to take additional steps. Licensing and registration requirements vary, so check in with state regulators beforehand.

Even if your business stays remote, each state might have different rules regarding advisor activity, marketing, and registration thresholds. Knowing those expectations before you move prevents delays once you’re up and running.

Create a Strategic Pre-Transition Plan

Once you understand the legal side, the next step is planning the move. A good pre-transition keeps things organized and gives your team a clear path to follow. Below, we’ll cover two key parts of that planning process.

Build a Transition Timeline with Key Milestones

A solid timeline helps you break the process into manageable steps. Your timeline might include your resignation date, when you’ll reach out to clients, when documents will be submitted, when accounts should transfer, and when onboarding will be complete.

Assign team members to specific tasks or keep a checklist to track progress. Delays happen, so be flexible, but stick to a general structure so nothing is missed.

According to industry data, 321 RIA (Registered Investment Advisor) deals were announced in 2023, down nearly 6% from a record 340 in 2022. This makes having a transparent plan more essential than ever. 

Choose the Right Custodian Partner

The custodian you choose can determine how easy your move will be. Look for one that offers solid support during transitions, has a platform you’re comfortable with, and integrates well with your other systems.

A good custodian helps with paperwork, answers client questions, and guides your team through the setup. The earlier you involve them, the easier it is to stay on track. Start conversations with their transition team in advance. This way, they’re ready to step in when needed.

In 2023, RIAs and independent broker-dealers grew their headcounts by 856 and 685, respectively, while wirehouses lost 612 advisors on a net basis³. Because of this, more advisors are leaning into platforms that support independent moves. 

Communicate the Transition to Clients

Informing your clients is one of the most important steps in the process. How you frame the conversation can affect whether they decide to follow you. These next points focus on building a clear, calm, and client-focused message.

Craft Your Message and Talking Points

When reaching out to clients, stay positive and focus on what the change means for them. Instead of raising concerns about your previous firm, focus on the benefits. This could be better service, a platform that fits their needs, or more flexibility in working together. 

It also helps to create a set of talking points your whole team can use. That way, every client hears a consistent message. Emphasize continuity, and remind them they’re still working with the same advisor. They’re not starting over with someone new. 

Set Expectations and Address Concerns

Clients might have questions about how the move impacts their accounts. Be ready to explain any changes to fees, how they’ll access their accounts, and what new tools they might be using. Keep it simple and avoid jargon.

Let them know what they’ll need to do, such as signing new forms or verifying account information. Offer several ways to get in touch (i.e. phone, email, video call) so they feel supported through the process.  

Simplify the Paperwork Process

Paperwork can be one of the more time-consuming parts of a transition, but it doesn’t have to be stressful. Strong support can make things easier for clients and help things move faster.

Use Digital Tools and Custodian Support

One of the best ways to keep the paperwork moving is by using digital tools. E-signature platforms save time and are usually more convenient for clients. Still, it’s a good idea to offer paper copies, too. Some clients prefer having physical copies, and giving them a choice is helpful.

You can also make things simpler by sharing completed examples and step-by-step guides. Clients will feel more comfortable if they know exactly what to expect. 

Most custodians have systems to help with tracking, follow-ups, and document status updates. Work with your custodian’s team to stay on top of what’s been received and what still needs attention. 

Manage the Resignation and Transfer Carefully

Leaving your current firm is a big step, and how you handle it can impact the rest of your transition. Being thoughtful and following the right process helps avoid problems and keeps things moving.

Execute Under Broker Protocol or Alternative Rules

If your firm is part of the Broker Protocol, your resignation letter should follow specific guidelines. It should clearly state your departure, the date, and confirm that you’re following protocol procedures. You’re allowed to take limited client info, such as name, address, phone number, email, and account title.

If your firm isn’t part of the protocol, different rules apply. You may not be allowed to contact clients or take any information with you. That’s why it’s important to understand the terms of your agreement and stick to them closely.

Avoid the urge to notify clients ahead of time, even if your intentions are good. Reaching out too early or sharing account details before you leave could cause confusion or even legal troubles.

Keep Clients Updated During the Process

Once you’ve made the move, keep your clients in the loop. They’ll want to know what’s happening with their accounts and when they’ll be completely set up.

Give frequent updates on document status, expected transfer timelines, and how they’ll access their new accounts. If possible, assign someone on your team as a point of contact to handle transition-specific questions. This personal touch helps clients feel supported while everything’s in motion. 

Focus on Retention Through Strong Relationships

One of the best ways to keep clients during a transition is to lean into the relationships you’ve already built. People work with you for your advice, support, and familiarity, not just because of a firm’s name or logo. 

Strengthen Loyalty and Reduce Attrition

Before the transition starts, take time to reconnect with clients. Schedule review meetings, share portfolio updates, or provide small planning check-ins. These moments show clients that your attention is still on them and that this won’t change after the move.

It also helps to remind clients that they’re working with you, not just a brand. Some advisors use a simple analogy to explain it: clients don’t follow the wrench; they follow the mechanic. You’re the one guiding their financial life, and that doesn’t change with a new name on the letterhead.

According to Schwab’s 2023 RIA Benchmarking Study, RIAs have held 97% client retention rate over the past five years. Client growth for RIAs was also up 6.2% for all firms in 2022, in line with the five-year annualized growth rate⁴. That’s a strong sign that clients stay when the advisor relationship stays strong. RIAs have also outpaced broker-dealer-affiliated advisors when it comes to winning new business, with a 69% success rate compared to 59%⁵.

Post-Transition Onboarding and Follow-Up

The transition doesn’t end once the paperwork is completed. After the move, it’s important to check in with clients to ensure everything is working the way it should. A little follow-up goes a long way in reinforcing trust and demonstrating that you’re still there for support.

Resume Regular Reviews and Provide Support

Start by scheduling follow-up meetings with clients. These meetings give them a chance to ask questions, and they allow you to make sure transfers are complete and accounts are working right. Confirm that key features such as auto-investments, alerts, or linked accounts are set up as they were before.

You can also take this time to introduce any new tools or platforms that they’ll be using. Walk them through the basics and provide simple guides or links they can refer to later. A quick thank-you note or message of appreciation helps close the loop and reinforce your ongoing support.

According to industry data, only about one-third of RIA leaders feel confident that the next generation is ready to take over, 34% have medium confidence, and 32% have no confidence at all in the next generation’s readiness⁶. That makes personal follow-up even more important. It keeps your relationships strong and reminds clients that you’re still fully present in their financial lives. 

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Finalize the Transition with Ongoing Support

Even after clients have signed paperwork and transferred their accounts, your work isn’t done. Following through with steady support keeps relationships strong and shows that you’re still committed, even as things settle into place.

Once you’re stable, schedule check-in meetings with your clients. These give you an opportunity to ensure everything transferred properly and that things such as auto-investments, alerts, and linked features are working correctly.

It’s also a good time to walk clients through any new tools or account features. Keep things simple. Short guides, demos, or even a brief email can be enough. A thank you goes a long way as well. Let clients know you appreciate their patience and trust throughout the transition.

Key Takeaways

• Transitions are easier when you plan ahead, understand your legal obligations, and keep clients informed at every step.
• The Broker Protocol offers flexibility, but only if both firms are members and your contract allows it.
• Clients value consistency. Clear communication and personal outreach makes a big difference.
• A strong custodian and organized paperwork process reduce delays and client confusion.
• Ongoing support after the move helps reinforce client loyalty and maintain momentum.

Action Items

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