Leaving large firm to go to smaller firm - how do I talk with clients?

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Dec 6, 2011 11:51 am

I am leaving a large brokerage house to go to a small firm and wanted to know the best way to retain clients. Any ideas or best practices?

Dec 6, 2011 3:53 pm

Focus on a more personal touch for their best interest. Are you doing commission based or managed accounts? I did the same and when I moved to a smaller firm 90% of my clients came with me, I am 50/50 right now on commission/managed, moving more towards managed. I told them the smaller firm has the same regulations as the larger firm but with a lot less overhead expense.

Dec 9, 2011 11:28 am

Sounds like we are on the same page here - Right now I am majority commission, but I am looking to move clients into managed accounts. How did you discuss this option with your clients?

Dec 9, 2011 2:08 pm

most of the clients I moved to managed accounts are retired and starting to take monthly income. I showed them that if we moved from commission to managed there would not be any commission to sell any stock to get them the monthly income and I moved them to more income producing funds, showing them the cost savings from the A share commission to the managed account. Plus I can use different fund families in place of one fund family that they paid up front commissions on. EXP: one of the income funds I was using went from paying 5% down to 2.5%, so we move from that one into another fund family paying at least 5%. I have one right now that I am working on and he needs to sell to take the gains he has but does not want to pay the commission... I set my limit to $250,000 for minimum on managed accounts - I diversify them from 8 to 10 investments.

Dec 9, 2011 2:43 pm
Thank you for that - you just put my thoughts into words.