April 16, 2021
Josh Tomolak Quoted
By Gary Stern
Advisors who switch firms or strike out on their own regularly trumpet their successes, breathlessly saying they wish they left sooner. However, a new study by Cerulli Associates examines the often unspoken downside — client attrition and loss of client assets.
But any advisor who is planning to switch firms needs to lay the groundwork to bring their clients with them, from three months to a year in advance of leaving, if possible, notes Joshua Tomolak, a senior consultant at Morristown, N.J.-based Diamond Consultants, which specializes in financial services. Deepening bonds with clients via Zoom or phone calls, and meeting for coffee when permitted in a pandemic world, intensify the relationship and heighten the chances of client retention.
Client attrition is a risk that every advisor encounters when changing firms. “If every advisor brought over 100% of clients, we wouldn’t be seeing incentives that are reaching high water marks with firms. These firms are paying for the risk that the advisor is experiencing,” explains Tomolak.