How to Conquer Your Top Fear When Changing Broker Dealers: Client Retention
February 21, 2018 Jon Henschen as published on ThinkAdvisor You may have heard this before, “If you change your broker dealer, you’re going to lose 30% of your book.” It’s fairly common for advisors to make blanket statements such as this about client retention. And while it is possible to lose clients, the devil is in the details: where are you leaving from, where are you going to, and why. If you’re going from a bank to an independent broker dealer, a 30% or higher loss of your client base is quite common. This often is due to non-compete clauses and bank legal maneuvers to prevent your clients from moving with you. However, if you are moving from an independent broker dealer to another independent broker dealer, retention numbers are much higher, with losses of...