While we work with a wide variety of advisors and firms, they have many of the same questions and curiosities. We’ve gathered some of the most common ones here. If you have any other questions, please call or click here.
- What can Diamond Consultants do for me?
- Is there a downside to having a search firm represent my interests?
- As a high profile advisor, I have many contacts. Why shouldn’t I go to them directly?
- I am the principal of an independent wealth management firm and find our growth to have plateaued. How can Diamond Consultants help?
- With an aging advisor population and a looming succession crisis, what options do I have?
- Does Diamond Consultants work for any particular firm?
- What kind of “deals” are the major firms offering?
- What kind of transition packages do Independent Broker Dealers and RIA Custodians offer?
- I am not yet committed to making a move. Is it premature to begin having this conversation? I don’t want to waste anyone’s time if I decide to stay after doing due diligence?
- There is a lot of risk in a move; what percentage of an advisor’s assets typically move with him?
- What is the “Broker Protocol?
- What kind of support can I expect as I transition my book of business?
- How will the new Broker Disclosure rule impact me if I decide to move?
“What can Diamond Consultants do for me?”
Diamond Consultants is a recruiting and consulting firm renowned for helping advisors nationwide to find their best business lives. We objectively view your business from all angles to gain an understanding of important issues and frustrations, and ask provocative questions. We believe the most pivotal question is, “What impact are your frustrations having on your ability to serve your clients and grow your business?” The answer to that question determines when a change should be considered.
If so, we streamline the due diligence process to meet your needs and those of your clients. We deliver a customized solution set, including access to major firms, independent brokerages and custodians, as well as opportunities you may not currently be aware of. We provide a completely value added service, at no cost to you. We do not accept retainer payments from advisors or firms which allows us to retain our intractable objectivity. [back to top]
“Is there a downside to having a search firm represent my interests?”
No. The fee we earn if we successfully find you a new home is paid by the “acquiring” firm, and has no negative impact on the “deal” or compensation you will receive. This is true even if you go independent, or are already independent and changing broker-dealers or custodians. And if we believe that it is not in your best interest to make a change, we will let you know and guide you accordingly. [back to top]
“As a high profile advisor, I have many contacts. Why shouldn’t I go to them directly?”
We’ve found that although most advisors do have a large network of contacts, you can still greatly benefit from our unbiased, competitive intelligence on all of your options allowing you to choose what is the best fit for you and your clients. We help you to streamline what can be an overwhelming process. Our depth of industry knowledge and competence is unmatched in this space. As your trusted partner, we give you balanced and objective advice and always put your interests first. [back to top]
“I am the principal of an independent wealth management firm and find our growth to have plateaued. How can Diamond Consultants help?”
Experts agree that the wealth management business is becoming significantly more challenging. Increasing operating and labor costs, new clients becoming harder to find, greater competition, and a changing regulatory environment all speak to the need for enhanced growth. Most advisors agree that organic growth alone won’t yield the results they seek. We can help drive growth by facilitating your recruiting and acquisition efforts and work with you to determine if remaining fully independent is in your best interest. [back to top]
“With an aging advisor population and a looming succession crisis, what options do I have?”
Whether you are an employee of a major brokerage firm or an independent business owner, succession planning should be top of mind- no matter your age or career stage. Diamond Consultants is expert at assisting wirehouse advisors find next gen partners at competing firms and at helping independent business owners find their successors via recruiting, acquisition or merger. We have written much on the topic and would be happy to share our thought leadership with you. [back to top]
“Does Diamond Consultants work for any particular firm?”
No. We are entirely independent and agnostic. We do not accept retainer fees from any firm; our ability to be completely objective and best serve our clients depends on our intractable objectivity. We will never attempt to force a fit between an advisor and a firm. Our sole mission is to find the right match for you and your clients. [back to top]
“What kind of “deals” are the major firms offering?”
There is no “cookie cutter” formula for the deals being offered. All packages are crafted on an individual basis and are based on many factors. Our consultants always know what the current deals look like. If you have specific questions about transition packages or compensation, please call us directly, and we would be happy to discuss them with you personally. [back to top]
“What kind of transition packages do Independent Broker Dealers and RIA Custodians offer?”
All offers are negotiated on an individual basis. We are happy to discuss with you the short and long term economics of going independent. [back to top]
“I am not yet committed to making a move. Is it premature to begin having this conversation? I don’t want to waste anyone’s time if I decide to stay after doing due diligence?”
We are strong believers in being proactive. We believe advisors should understand and evaluate their options given the dramatic changes in the industry, even if it is solely to have a Plan B. By taking a meeting or having a conversation with a firm, you do not create an expectation that you are going to make a move. Furthermore, it is customary for advisors to meet with managers of firms long before they consider a move. In fact, quite often it is the case that after completing some due diligence, an advisor opts to stay put. [back to top]
“There is a lot of risk in a move; what percentage of an advisor’s assets typically move with him?”
The majority of advisors that we work with move at least 85%-90% of their assets within the first 90 days. Most advisors, prior to making a move will assess the portability of their business and will have a good sense of which clients are loyal and which are not. [back to top]
“What is the “Broker Protocol?”
The Protocol for Broker Recruiting (The Protocol) is an agreement among more than 900 advisory firms that provides a mechanism for financial advisors to move between member firms and helps avoid costly and time-consuming litigation. It permits an advisor to take with him certain client information (client name, address, phone number, e-mail address and account title) to a new firm and contact his clients. Since the Protocol came into existence several years ago, thousands of advisors have been able to move firms without legal interference. If you have any questions about the Protocol you should consult with an attorney. [back to top]
“What kind of support can I expect as I transition my book of business?”
Leadership at the wirehouses, regional brokerages and independent firms are experts in managing the transition process and guiding you every step of the way both before and after you join. The firms utilize both internal and external experts to ensure that clients are transitioned as quickly and efficiently as possible. [back to top]
How will the new Broker Disclosure rule impact me if I decide to move?
We believe that the new rule will have little or no impact on the way brokerage firms and advisors do business. There is an insatiable demand for talented, honest and successful financial advisors by the brokerage houses, and the firms will continue to pay a premium for them. Deal structures, however, could be impacted to reflect new disclosure requirements. Quality advisors will continue to put their clients’ interests first, choosing to change firms because it would mean being able to offer better service and better outcomes for those clients. Generally speaking, the fact that a transitioning advisor is being paid a sum of money as an incentive to change firms has no bearing upon the way he serves his clients. [back to top]