According to a report by Cerulli Associates, 37% of financial advisors are expected to retire within the next ten years. The key is this: How you communicate during transitions matters.
A smooth leadership change maintains client confidence and team morale. Here are three approaches that go beyond the standard press release to announce your new managing partner, chief investment officer, or other key leaders.
1. Embrace the Power of Video
An introductory video is unexpected, but it's a great idea. Think of it as a virtual meet-and-greet that humanizes your leadership change while maintaining a professional image.
The process for creating and polishing the intro video is pretty simple:
- Record your initial announcement as the current leader
- Have the incoming leader record their segment
- Include brief highlights of their credentials and philosophy
- Ensure compliance reviews the content before distribution
- Edit the segments together for a polished final product
Voilà! You’ve created an informative video announcement that’s far more engaging than a standard memo.
When asking your new leader to record their segment, encourage authenticity over scripted perfection. Clients and team members want to see the real person who'll be guiding their financial future, not someone robotically reciting your firm's AUM figures. A genuine 90-second introduction builds more trust than a perfectly polished 3-minute speech.
For distribution, consider a tiered approach: share first with your internal team via your secure communication platform, then with clients through your client portal, and finally on your firm's website and LinkedIn page for broader industry awareness.
Digital Integration Strategy
Extend beyond the video announcement. Update all digital touchpoints to maintain consistency:
- Refresh your website's "About Us" and leadership pages immediately
- Update the new leader's LinkedIn profile to reflect their role at your firm
- Submit updated information to advisor directories like NAPFA or FPA
- Schedule a series of social media posts introducing different aspects of the new leader's expertise
This coordinated digital approach prevents the confusion that occurs when clients find outdated or conflicting information about your leadership team online. Consistency across platforms reinforces stability during the transition.
2. Strategic Meeting Announcement
Already have quarterly team meetings or client events scheduled? Transform these into meaningful introduction opportunities. Unlike investment firms that might focus purely on performance figures, advisory firms thrive on relationships, so make this personal.
When announcing your new leader in a meeting, include:
- Their specific role in the firm's future vision
- How client relationships will be managed during the transition
- Their unique background and what attracted them to your firm
- Any shifting of team responsibilities that colleagues or clients should anticipate
For client-facing announcements, consider hosting a special "meet the new leader" webinar where both outgoing and incoming leaders participate. This shows continuity and instills confidence that client relationships remain the priority through the transition.
Ask your new leader to share their "why" story. Instead of "I'm Jane Smith, new Managing Partner with 15 years of experience," encourage something more meaningful: "After seeing how many families struggle with retirement planning despite having advisors, I developed a passion for creating straightforward financial roadmaps. That's what drew me to this firm's client-first approach."
Client Communication Coordination
Coordinate their meeting announcements with a written client communication plan:
Send a brief email announcement the day before any public announcement, ensuring clients hear it from you first. The email should include a personal note from both the departing and incoming leaders to show continuity in the firm's client service approach.
3. Host an Introduction Series
Rather than cramming all introductions into one event, consider a thoughtful sequence of smaller gatherings over the new leader's first month. This works particularly well for firms with multiple client segments or specialized service teams.
For internal teams, a casual lunch creates space for real connections. For key clients, consider small group gatherings organized by relationship length, portfolio size, or service needs to give the new leader focused time with different groups of clients.
Schedule these events within the first three weeks of the transition. For your top 20% of clients (who likely generate 80% of your revenue), consider individual meetings co-hosted by the departing and arriving leaders.
Client-Facing Event Ideas
Financial advisory firms have unique opportunities to make leadership introductions meaningful:
- Small breakfast sessions focused on specific client segments (business owners, pre-retirees, etc.)
- Wine tasting or a similar social event that allows casual conversation alongside the formal introduction
- Educational seminar on a relevant topic co-presented by outgoing and incoming leaders
- Virtual "coffee chat" options for geographically distant clients
Remember that successful advisory firms are built on trust that should be maintained—and hopefully, strengthened—during leadership changes. A study by Vanguard found that clients who have a strong relationship with their advisor can maintain confidence during both bull and bear markets. Re-creating this relationship becomes much more difficult without proper planning and transparency during events such as promotions or transfers.
Compliance Checkpoint
While these creative approaches build relationships, don't forget the regulatory requirements. Leadership changes at registered investment advisor firms often trigger Form ADV updates and potential client notifications. Ensure your marketing team collaborates with compliance to meet SEC or state requirements for material changes in firm leadership. Your creative announcement should complement (not replace) these required disclosures.
According to the SEC, firms that fail to properly disclose material changes in leadership can face significant penalties. Proper disclosure reinforces your firm's commitment to transparency and ethical practice.
Successful Leadership Transitions Build Trust and Foster Growth
No leadership transition in financial services happens in isolation. Whether you're implementing one of these approaches or developing your own strategy, the goal remains the same: maintain trust, communicate stability, and introduce change in a way that strengthens rather than disrupts client relationships.
Need help crafting the perfect leadership transition strategy for your financial advisory firm? We show firms how to handle these critical moments without a single client leaving during the transition period. Get in touch.