Each week it seems another financial giant with brokerage subsidiaries is going under and experiencing a bailout or a buyout/merger. First there was Bear Stearns, then Lehman Brothers, and now Merrill Lynch (then possibly AIG’s brokerage division!).
So much news is released on a daily basis that it’s becoming difficult to keep up with the developments and consequences of the unprecedented actions.
What is an adviser to do?
Communicate Your Benefits
What makes your advisory firm different from the brokerage houses that are experiencing financial turmoil by the parent/umbrella company? How are you communicating that message to prospects? How will prospects searching for another adviser find your firm?
Focus on Existing Prospects
Can you identify prospects that visited your firm in the past that said they held assets with affected firms? Did you ask what firms they used at the time for financial services? How was that information recorded in your systems to use in times like these? Can you refer to that list of prospects and give them a second invitation to your firm?
Prepare for Asset Transfer Delays
With so much uncertainty regarding the solvency of brokerage firms, I can only imagine the turnover being experienced with rank-and-file employees in the processing and transfer departments. If clients do want to transition to your firm, you should prepare them for potentially significant delays in the transfer of assets to your custodian. Do you have the people-power in your firm to remain proactive with the captive brokerage firms in order to expedite asset transfers?
Capitalize on the Turmoil
How all this turns out is anybody’s guess, but astute advisers can capitalize on the uncertainty in the brokerage market. By offering compelling services and security to potential clients, advisers can grow their business despite the constant barrage of bad news in the global economy.
