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Taking the Mystery Out of the Transition Process

Taking the Mystery Out of the Transition Process

November 23, 2021

Financial advisors who have decided the best path for their career and their clients is to create an independent practice have answered some particularly important questions along the way. In short, they’ve decided there are many good reasons ‘why’ they should make the move. Next comes ‘how’ to get it done.

Completing a transition successfully is a huge concern for advisors considering going independent. But there’s good news. Cutter & Company, an independent Broker-dealer and Registered Investment advisor, has a proven track record developed over more than three decades that shows a typical transition successfully brings 85 percent of clients to the new practice in just 90 days. Most, if not all, of the rest generally follow thereafter.

Our highly qualified conversion team helps you navigate the transition from start to finish. The steps are summarized below and in this brief video

60 days prior to the transition, focus on the fundamentals including:

  • Identify an office location 
  • In the St. Louis area, the Cutter & Company home office has turnkey space for lease that includes, equipment, receptionist, telephone, and more. 
  • Determine your business name 
  • Secure a website domain 
  • File for a Tax ID number 
  • Develop a business logo 
  • Determine equipment and furniture needs 
  • Install phone and internet service 
  • Accumulate your allowable client data 

In phase 2, between 30 to 45 days prior, we’ll help you: 

  • Consider staffing needs and begin the interview process 
  • Review outsourcing options for accounting and HR 
  • Arrange bi-weekly conference calls with your Cutter transfer specialist to go over the details specific to your move 
  • Finalize an “Introduction Letter” to announce your move 
  • Isolate any special situations pertinent to your clients, such as 72(t) distributions or routine ACH’s 

Phase 3, or the final run up to transition day, attention turns to these steps: 

  • Confirm computer equipment compatibility 
  • Provide training on the paperwork requirements for opening accounts 
  • Request that system access be activated 
  • Establish the email address to be used when you’ve officially transferred 
  • Help you complete the documents required to join Cutter and Company 
  • If you’re operating under a “DBA” name, order business cards and letterhead 

Transition can be challenging. But Cutter and Company will be there for you every step of the way. 

The most successful transitions to independence are made by financial advisors who have done their homework and who have well-nurtured relationships with their clients. When done using a proven process, as we have seen demonstrated countless times over the years, transition can be the linchpin that confirms all the reasons why you made the decision to go independent in the first place.