Your financial advisor's firm getting acquired is a business transaction. You're not a party to the deal. But you're affected by it, and you have every right to get clear answers before deciding whether to stay.
According to Fidelity's 2023 RIA Benchmarking Study, roughly 1 in 3 RIA clients had experienced a firm-level transition in the prior three years. The frequency makes it tempting to treat acquisitions as normal background noise. They're not. Each one has specific implications for your accounts, your plan, and your relationship.
Ask these seven questions before you assume everything will be fine.
1. Is My Advisor Staying, and for How Long?
This is the first question because it's the one that changes everything else. If your advisor is leaving, you're not experiencing a transition. You're being reassigned.
Get a specific answer. "They plan to stay for now" is not specific. A commitment to a defined period, 12, 24, or 36 months, with a named successor identified for after that period, is specific.
2. What Happens to My Existing Financial Plan?
Your plan represents years of conversation, adjustments, and documented goals. The question is whether the new firm has actually reviewed it, or whether it will sit in a file while a new advisor starts over.
Ask who reviewed your plan before the transition and what they noted. A thoughtful acquirer will have had someone look at every major account before close.
Jeff Judge at Chesapeake Financial Planners looks at this directly: "Acquisitions are rarely about you as a client. They're a business transaction. Your job is to make sure the promises your old advisor made still apply under the new structure. Ask for them in writing."
3. Are My Fees Changing?
This question deserves a specific, written answer. Common scenarios include fees locked for a defined transition period then potentially restructured, immediate fee changes tied to the acquiring firm's fee schedule, or fees unchanged because the acquiring firm agreed to honor existing client agreements.
None of these is inherently acceptable or unacceptable. You need to know which one applies to you and for how long.
4. Who Is My Primary Point of Contact Going Forward?
You should have a name, a phone number, and a meeting scheduled before the close if at all possible. If the answer is "TBD" or "your advisor will still handle everything," follow up with specifics: Who's responsible for your account reviews? Who calls you if something needs attention?
5. Will My Investments Be Repositioned?
Some acquiring firms use centralized investment models and will reposition acquired accounts to fit those models during the transition period. This creates taxable events in non-retirement accounts. It may also shift your investment approach in ways that don't match your plan.
Ask specifically: "Will any changes be made to my portfolio as part of this transition?" And if the answer is yes: "What changes, on what timeline, and what are the tax implications?"
6. What Are My Options If I Want to Leave?
You should leave on your terms, not because you didn't know you could. Confirm which products you hold are portable without surrender charges or redemption penalties. Know your account transfer timeline if you decide to move. Ask whether there are any fees associated with transferring your account.
7. How Will My Data and Privacy Be Protected?
An acquisition means your personal and financial data is being transferred to a new entity. Ask what the data transfer protocol is, who has access, and how the acquiring firm's privacy policies compare to your current firm's. You're entitled to a plain-language answer.
What to Do With the Answers
Write them down. If you're getting verbal assurances without anything in writing, ask for a confirmation email. This isn't about distrust. It's about creating a record that protects both you and the new firm if questions arise later.
If the answers are clear, specific, and acceptable, staying is often the right move. If they're vague, delayed, or concerning, that's information worth acting on.
At Chesapeake Financial Planners, if you're evaluating a transition and want a second perspective before deciding, schedule a no-obligation call with Jeff. You don't need to commit to anything. You just need to make a decision you can stand behind.
The information provided is for educational purposes only and should not be construed as investment advice. Investment strategies should be tailored to individual circumstances, risk tolerance, and goals. Past performance doesn't guarantee future results. Consult with qualified financial professionals regarding your specific situation.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a registered investment advisor and separate entity from LPL Financial.
Chesapeake Financial Planners | 2402 Scotlon Ct, Forest Hill, MD 21050 | (410) 652-7868 | www.chesapeakefp.com
