Wealth Management Mergers: What Clients Need to Know

Why Wealth Management Mergers Are Happening

“Mergers are about growth and expanded resources—but they can bring change.”

Mergers between wealth management firms allow them to combine resources, expand their service offerings, and compete more effectively. However, these consolidations can also mean changes in fees, service structures, and advisor availability, which can impact your experience as a client.

• Expanded Resources: Mergers often bring access to a larger team of advisors and more diverse investment options.

• Potential Fee Changes: New ownership may adjust fee structures to align with the merged firm’s policies.

• Enhanced Technology: Larger firms often introduce advanced tools to improve client services.

💼 Tip
If your wealth management firm is merging, review any new service agreements and stay informed about potential fee adjustments or changes in advisor support.

How Mergers Can Affect Client Services

“Greater resources can mean better services—but also potential shifts in support.”

With mergers, clients may experience changes in advisor relationships or how services are delivered. While the expanded resources are beneficial, some clients may feel they’re dealing with a larger, less personal firm.

• Access to Specialized Advisors: Mergers can introduce more specialized financial professionals to your advisory team.

• Changes in Service Style: Transitioning to a bigger firm may result in a shift to a more standardized client service approach.

• Additional Investment Opportunities: Mergers often bring a wider range of investment products.

💼 Tip
Ask your advisor about any changes to your account management, service style, or available investment products post-merger.

Potential Impact on Your Financial Plan

“Aligning with a larger firm may affect portfolio strategy and flexibility.”

A larger wealth management firm may bring in new policies or standardized practices that impact portfolio flexibility or investment strategy. For clients with specialized needs or unique investment preferences, this shift may require an adjustment period.

• Standardized Investment Approaches: Some merged firms may use more uniform investment strategies.

• Potential Policy Changes: Larger firms may have guidelines on certain asset classes or investment styles.

• Access to More Products: Mergers can provide access to a broader range of products and strategies.

💼 Tip
Discuss any policy or strategic changes with your advisor to ensure your financial plan aligns with the new firm’s approach.

What to Ask Your Advisor Post-Merger

“Clear communication is key to ensuring your financial needs are still met.”

If your wealth management firm is undergoing a merger, staying proactive about potential changes can help you manage the transition. Asking the right questions will ensure you remain informed and comfortable with the evolving service.

• Will Fees or Service Levels Change?: Ask about fee adjustments or changes in service structure.

• How Will My Portfolio Be Managed?: Confirm if there will be changes to your portfolio strategy or management style.

• Are There New Resources Available?: Inquire about new tools, advisors, or investment options that come with the merger.

💼 Tip
Regularly check in with your advisor and stay updated on any changes in policy or service to ensure your financial goals remain a priority.

Bottom Line

Wealth management mergers can bring new opportunities and resources but may also impact client experience. Staying informed about changes to services and fees will help you make the most of your relationship with your advisory team. (Disclaimer: This is not financial advice.)

Stay Informed with Lumis Capital
Looking for expert insights on managing wealth and adapting to financial industry changes? Subscribe to our newsletter for guidance on navigating your financial future with confidence.