Leaving a FP/FA firm

What happens to my clients when I leave a FP/FA firm to join another FP/FA company?

There are different treatments for 2 main products:

  1.  For insurance products
    – Some FA companies allow you to move the insurance policies (most life insurance companies is supportive of the movement) to new FP/FA firm
    – Some FA companies don’t allow you to move the insurance policies to new FP/FA company but you can continue to enjoy the commission as long as you service the clients
    – Some FA companies don’t allow you to move the insurance policies and stop paying you the commission when you leave the firm
  2.  For investment products
    – Some FA companies allow you to transfer all your existing client’s investments to another FP/FA company
    – Some FA companies require the clients to redeem their investment in order to move to another FP/FA company
    – Some FA companies’ contract claims that the clients are owned by the FP/FA company, not the advisor. Therefore, you are not allowed to transfer the clients’ investment to another FP/FA company

 

Therefore, it is important for you to find out about what is the company’s arrangement on this before joining the company.

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