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If word gets out too early that you ’ re moving to a new firm , it can turn a straightforward process into a catastrophe .

By Barbara Herman and Joshua Tomolak

That ’ s something advisors should keep in mind if they ’ re thinking of switching affiliations . Even advisors just casually considering a move should be discrete . Impromptu conversations and idle comments can be damaging , create unnecessary legal exposure , and invite unwelcome scrutiny from their firms .

Take the example of an actual advisor we worked with , whom we ’ ll call “ Bob .”

Bob was a few weeks away from leaving one firm and joining another . He confided in a colleague and shared his plans in a social setting . It was intended as a friendly and presumably confidential conversation , but the news ended up reaching their manager .

The outcome was regrettable yet entirely avoidable . Bob had to leave earlier than he ’ d planned . This single indiscretion complicated both his departure and arrival at the new firm . That ’ s to say nothing of the additional stress he created for himself by having to accelerate his move .

Fortunately , these incidents are few and far between , but they still serve as a reminder that it ’ s important to keep mum , be deliberate in conversation , and avoid pitfalls by being aware of them . Here are seven precautions you should take if you ’ re considering a move :

1 . Be selective about whom you tell and keep those in the know to a minimum . Your “ inner circle ” should be tight and limited to only those who need to know . You should not even share what you ’ re thinking with your extended family and friends , much less with clients , since you are likely working under employment terms that prohibit soliciting clients in advance of your resignation , and possibly after the move as well . Ultimately , you ’ ll have to balance your need for secrecy with your need to keep key members of your team in the loop about your decisions . It ’ s about making thoughtful , deliberate choices .

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DECEMBER 2024 | FINANCIAL ADVISOR MAGAZINE | 29