When something changes
What should you do when your financial advisor leaves?
If your financial advisor leaves, first confirm who is responsible for your accounts and any pending decisions. You can evaluate the replacement advisor, consider following the departing advisor, or compare other firms. Read each firm's agreements, fees and transfer requirements before deciding; an advisor's departure alone does not tell you which option fits.
What should you confirm first?
Ask the current firm for the name of your account contact and a written list of anything that needs attention. Include scheduled withdrawals, pending trades, required distributions, lending arrangements and any employer-stock trading plan.
Your investments are not the advisor's personal property, and reassignment of service does not transfer ownership of your assets to that person. Account authority, restrictions and service commitments depend on the account documents; verify them rather than assuming everything continues unchanged.
How do the three choices compare?
Use the same questions for every candidate, including the firm you already use. Staying can be a considered choice, and moving can involve costs, interruptions or assets that the receiving firm cannot accept.
| Choice | Potential benefit | What to check |
|---|---|---|
| Stay with the firm | Continuity of existing accounts and arrangements | Who leads the relationship, and have fees or services changed? |
| Follow the advisor | An established working relationship | Do the new firm, costs and transfer conditions fit independently? |
| Choose another firm | A fresh comparison of services | What additional work, cost and coordination would the change require? |
What should you ask the departing advisor?
Ask which legal entity they joined, what services it provides and whether they receive compensation connected with transferred accounts. A familiar person can now work under different fees, custody arrangements or investment restrictions.
Whether an advisor may contact former clients depends on agreements and legal obligations. Do not infer the reason for silence or rely on a general promise that initiating contact removes those restrictions.
Which documents help you compare the firms?
Request the current relationship summary, advisory agreement and fee schedule from each candidate. The SEC's Form CRS guide explains how the relationship summary presents services, costs, conflicts and disciplinary information.
Ask for a position-by-position transfer assessment before authorizing a move. Our account-transfer guide explains the questions to resolve about investments, loans, tax lots and scheduled payments.
What should your decision checklist include?
Your checklist should connect each decision to a responsible person and a written term. Use it to compare the actual arrangements before choosing where to keep your accounts.
- Confirm the named person responsible for each pending action.
- Compare the services included in each firm's written agreement.
- Request the total costs and conflicts associated with each option.
- Review transfer restrictions and potential tax consequences before signing.
How much time should you take?
Check the actual notices and agreements for deadlines instead of assuming there is either an urgent deadline or unlimited time. Lending collateral, trading plans and scheduled distributions may need attention while the broader advisor decision remains open.
Write down what would justify staying and what would justify moving. If the answer depends on service rather than the departing person, the team-service comparison can help make that distinction.
What else should you know?
Do I have to follow an advisor who leaves?
You can evaluate the firm you use, the departing advisor and other firms. Review your agreements, service needs and transfer conditions before deciding; familiarity alone does not establish that a move is suitable.
Will my accounts automatically move with my advisor?
Confirm the account arrangements directly with the current and receiving firms. Moving advisory relationships or transferring assets requires the relevant account authorizations; do not assume an advisor departure has completed either process.
This piece is general education, not individual investment, tax or legal advice. Investing involves risk, including possible loss of principal. Decisions depend on your circumstances and the applicable agreements and law.
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How can you discuss your next decision?
Bring the planning question this guide raises for your situation. A conversation can clarify what information is needed and whether Aspirean's services fit the work.
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