Intro
Corey: hey everyone Corey Whalen managing partner bridgemark strategies firm that’s helped over a thousand financial advisors objectively explore the broker dealer and Ria Marketplace and help them find the firm with the right combination of feel fit and financials for them and their business over my career I’ve helped a lot of Bank advisors transition to a new firm and if you’re considering that there’s three things that you should really understand before you start doing your due diligence
Protocol Agreement vs Restrictive Covenants
Corey: the first thing to understand is is your Protocol Agreement firm under the protocol agreement or do you have restrictive covenants like a non-compete or a garden leave inside of your contract if you’re under the protocol agreement you’re in luck you have a lot more flexibility in the data you could bring such as name address phone number email address account type and you also don’t really have any limitations on soliciting your clients to come over to your new firm if you have any restrictive covenants inside of your contract things are a lot more restrictive for you so if you have any questions on that we can take a look at your rep agreement or we can send it to a financial services attorney we know most of the ones in the industry that are going to give you a clear understanding of what you can and cannot do
Financial Backing in a Transition
Corey: the second thing to understand is some Financial Backing firms are going to have your back more than others in a transition ninety percent of firms out there in the industry if you make a move from a bank to another firm and you have restrictive covenants in your contract and that firm comes after you legally it’s 100 up to you you have to hire your own attorney to represent you and you’re responsible for all the legal damages that come out of that but there are some firms out there that say hey we have a huge financial backing here you know we want you to be tunnel focused on bringing over your clients and as long as you follow your rules of your contract and your transition your old firm decides to come after you we’re going to financially back you 100 and we’ll even pay the financial damages so most firms won’t but some firms will financially back you in a transition from a legal standpoint and we can help align you with those firms
Offer Differences for Bank Advisors
Corey: and the third thing to Offer understand is many firms treat Bank advisors differently than other advisors coming from a wire house or an independent broker dealer from an offer standpoint so 80 percent of broker dealers out there are going to penalize you for being part of a broke Bank program and transitioning to another firm along the way a bank financial advisor has probably made a really big promise of the amount of assets that they could bring and they fell short of those expectations with these broker dealers and 80 80 plus percent of the broker dealers out there are gonna cut your upfront offer in half and put a significant amount on the back end which basically says listen once you bring the assets over we’ll pay you then your sign-on bonus but we’re not going to pay you up front and take on that risk that being said there’s still quite a few firms out there that regardless of you coming from a bank organization or not will pay you You full boat so I was working with a bank financial advisor the other day 2 million in production all fee based and we were finding it a really really hard to find more than a thirty percent of trailing 12 Revenue offer for this financial advisor even though he had amazing relationships with his clients he knew he was going to bring his practice no firms were willing to invest all the money up front but then finally after searching we found a few that gave him north of 100 of trailing 12 production to move to the independent channel so all of these firms are different in terms of the tools the capabilities the economics that they’re going to offer and we can really help you not waste time and focus on the ones that are going to give you the best economics possible
Conclusion
Corey: I really hope that this helped we have so many more resources on this YouTube channel in terms of best practices when transitioning from a bank broker dealer to the independent Channel I have plenty of interviews of bank financial advisors making a leap and opening up their own businesses sharing their best practices what they would have done different what they gained by making a move and how they’re growing in a new environment I really really hope it’s all helpful and if you have any other questions my contact information is all over the page thanks so much and I look forward to talking soon foreign
