- Who Owns the Book of Business? – This one is fairly obvious, but critical nonetheless. What will happen to my clients and assets if there is a separation 10 years from now? What does succession look like at the firm? This is something I recommend getting down in writing.
- Who Does the Firm Use as a Custodian? – For advisors who are going independent or changing firms within the independent channel, you want to determine if you prefer staying on the same clearing platform or switching to a different one. If moving clearing firms is a deal-breaker then make sure you get this question answered early on. Let’s face it, if you don’t need to change your clearing firm, your transition will be much easier.
- How Portable Are My Assets? – It’s important to know the kind of support the firm can provide in the specific areas where you do business. You want to ask about the portability of your assets in relation to the companies you work with. This is relevant for alternative investments and separately managed accounts (SMAs), in particular. In many cases, firms won’t use the same fund managers as you do, so you’ll want to ask about this early on.