Goind indy

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scooby do's picture
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Joined: 2006-08-28

I am thinking about leaving jones sometime in the next 6 months. I read you guys talking about preping your clients before you left. The indy I have spoken to said not to mention anything to clients. What did you say to your clients and how did you say it. Is this advisable?

NASD Newbie's picture
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Joined: 2005-08-01

scooby do wrote:I am thinking about leaving jones sometime in the next 6 months. I read you guys talking about preping your clients before you left. The indy I have spoken to said not to mention anything to clients. What did you say to your clients and how did you say it. Is this advisable?
What would you expect a prospective B/D to tell you regarding moving to them, knowing you have a non-compete agreement?  If they tell you to contact your clients they're encouraging you to violate the terms of your contract.
On the other hand, suppose you were one of your clients.  How much confidence would you have in your relationship with your advisor if that advisor allowed you to learn that he was no longer your advisor via a phone call from that Jones boiler room that is talked about?
A client is not going to "out" you to Jones if you tell them that you're considering a change that will benefit them and you too.  Don't ask them to leave Jones with you, they will almost certainly ask how they can go about transfering their account if you do leave--tell them that if you leave, and it's by no means a certainty, that they can expect a call from Jones and that the caller may have negative things to say about you--and if they do that is just another reason why you're changing firms.
Only a fool would not say a thing to their clients, just be careful how you word it--don't ask them to transfer their accounts.  If they'd be open to doing it after you leave they'll bring it up before you do.

troll's picture
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Joined: 2004-11-29

NASD Newbie wrote:scooby do wrote:I am thinking about leaving jones sometime in the next 6 months. I read you guys talking about preping your clients before you left. The indy I have spoken to said not to mention anything to clients. What did you say to your clients and how did you say it. Is this advisable?
What would you expect a prospective B/D to tell you regarding moving to them, knowing you have a non-compete agreement?  If they tell you to contact your clients they're encouraging you to violate the terms of your contract.
On the other hand, suppose you were one of your clients.  How much confidence would you have in your relationship with your advisor if that advisor allowed you to learn that he was no longer your advisor via a phone call from that Jones boiler room that is talked about?
A client is not going to "out" you to Jones if you tell them that you're considering a change that will benefit them and you too.  Don't ask them to leave Jones with you, they will almost certainly ask how they can go about transfering their account if you do leave--tell them that if you leave, and it's by no means a certainty, that they can expect a call from Jones and that the caller may have negative things to say about you--and if they do that is just another reason why you're changing firms.
Only a fool would not say a thing to their clients, just be careful how you word it--don't ask them to transfer their accounts.  If they'd be open to doing it after you leave they'll bring it up before you do.Newby gives some sage advice here.You don't need to ask clients to transfer their accounts, nor even tell them where you're going or what you're doing.  Just make an extra effort to be in close touch with them in these final months.  Carefully identify your "A" clients, considering not only assets and production, but temperment and future potential as well.  Identify ANY open service issues especially with top clients, and address them as promptly as possible.If there are any service/product/investment issues that are unique to your firm, take the opportunity to let your clients know that "I'm doing the best I can for you within this platform, but frankly, Mr. Jones, the way they do things here is (limited, causes operational problems, makes it difficult to address your needs) and it's very frustrating to me because you're a good client and I like you."  Depending upon how they react, that opens the door for you to casually mention that "oh I've learned a lot here, but I feel like maybe I've outgrown the program, and I'm considering opportunities that might allow me to serve you better....."Don't get carried away, but you can drop some hints like this that something might be going on.  These hints are best dropped over a pleasant lunch or dinner with your best clients.  Not that you have lay out big bucks, but something nice and get eye to eye and belly to belly with 'em.

BrokerRecruit's picture
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Joined: 2005-04-19

One thing I have found that works is set up a prearranged meeting time for your best clients - the ones that you highly want to desire to bring with you in the first 30 days.  Have these appointments scheduled in a block of time - ie., 30-60 minutes (or whatever is appropriate for each client) - back-to-back in a location outside of your office (a conference room in a commercial building works, oftentimes).  This way, you have a meeting scheduled with them that you can utilize to deliver your paperwork to, explain why you made the move, how it will benefit them, etc. 
By doing this, you have not done anything to breach your contract or piss on anyone's parade when it comes to non-competes.  A little tricky to coordinate at times, but if you're nervous about your non-compete, it's a way to not solicit them, but to ensure you have spoken with them quickly after the move. 

FreedomLvr's picture
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Joined: 2006-02-10

And make sure all the clients you'd like to keep have your cell number!  Many of them will call you as soon as they find out you're no longer w/ EJ.

BrokerRecruit's picture
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Joined: 2005-04-19

You can also prep them by saying something like:
Mr./Ms. Client, you and I have had a good relationship for x years and I have enjoyed serving you.  Hopefully, you have felt the services I have provided have given you a great deal of value, both financially and personally.  However, should the opportunity arise where I was able to serve you better with another firm, I would like to continue to work with you - would you come with me and continue our relationship?

zacko's picture
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Joined: 2004-12-01

If you are smart you will have your new office and phone lines all set up well before you leave.  Also, have your BOA leave a week or two before you to get the new office ready.
I wouldn't tip your clients off too soon...they will start to get ansy and worry.  Three weeks is the most I would go out...but either way ask your clients to keep quiet.  You are telling them out of professional courtesy and respect for the relationship you share. 
In the last week at Jones, consider (I said consider) pre-booking some appointments at the new office or at clients homes.  You will be told by most that you shouldn't do this.  It will make for an easier transition and help you get out of the gate faster.  Now, put some fake $$ dues on the system to confuse the new guy and you are set. 
Also, YOU MAKE ALL the calls.  YOUR BOA makes none...not even to the B and c clients.
In the end, your preparation and planning will determine your level of success.

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