Not All RIA Custodian Transitions are Created Equal

Custodian Merging? Was your firm bought out? Compliance Concerns?

There are currently trillions of dollars about to transition because of RIA custodian mergers. This massive amount of assets will need to move platforms, and in a relatively short timeframe.

Transitioning custodians can be complicated – there are a lot of i’s to dot and t’s to cross. Will your business have the support you need to make the move?

Moving in a Merger

Advisors navigating a RIA custodian merger may be facing a difficult challenge: planning for their future without much clarity on the transitions process or what they can expect from their relationship with their new provider.

While these advisors may have been promised a smooth transition with no repapering, it may not be that simple. When making the move, advisors could still encounter some complications – they’ll likely need to review items like IRA designations, cashiering agreements and FINRA qualification rules. This uncertainty doesn’t just impact advisors – it can impact their clients.

When making a transition, advisors can expect some common questions from clients. Questions like:

• What changes can we expect to our accounts with the move to this new custodian?
• Are we going to get the same level of support from this custodian that we got with the last provider?
• Will I have to pay higher fees under this new provider?
• Will you be able to leverage the same technologies that you’ve been using?
• How long will it take for your team to move to the provider? When will you return to business as usual?

If your provider isn’t helping you answer these common client questions, you may be in for a tough ride.

No matter what promises a big-name custodian may make, transitions are complicated. With such massive mergers, it’s hard to fathom how these big-name providers could offer the hands-on support and responsiveness that RIAs need to make the move with confidence.

TradePMR’s Approach to Transitions

At TradePMR, RIAs know what to expect when making a move. While every transition is different, advisors signing on with TradePMR have access to a dedicated and experienced Transitions team to help them navigate their unique move.

That Transitions team helps advisors in a few key ways:

• Supporting Client Conversations – Communicating a transition to clients can be tricky. The TradePMR team helps arm advisors with the info tools to streamline those conversations and ideally get clients on-board and excited about the move.
• Prepping Your Team – A successful RIA custodian transition is a full team effort. The TradePMR Transitions team helps RIAs build a plan to ensure that every team member is invested in the move and can contribute to the transition.
• Data Portability – There is a ton of data that needs to be moved when transitioning providers. TradePMR helps RIAs to identify what historical data they’ll need, and how to effectively bring that data into TradePMR’s Fusion platform.
• Advanced Technology – TradePMR leverages a digital account transfer tool designed to seamlessly move client accounts to the Fusion platform. Automating this process can help advisors to transition their client accounts securely, accurately, and quickly.

With a hands-on approach to transitions backed by experience and advanced technology, TradePMR aims to move advisors to the platform without derailing their businesses.

Willing to take the risk?

We believe sticking with a custodian through a merger can be a risky move. TradePMR’s founder, Robb Baldwin, took this wait-and-see approach as a RIA in the 90’s when his custodian was acquired. That was a big mistake.

Finding the right RIA custodian isn’t easy – don’t let a merger dictate the future for your firm.

If you’d be interested in seeing how TradePMR would approach your transition and support your RIA, we should talk. We can dive into your unique needs, your challenges, and how TradePMR could help you accomplish your goals.