In our experience, clients find the process of switching financial adviser emotionally challenging, even when they know it’s the right move. If that sounds familiar, you’re not alone.
According t0 Investec research, one in three (31 %) people are considering switching from their current financial adviser and of those considering switching, 82 % say they plan to make the move within the next 12 months. Not because they’re happy, but because it feels awkward, complicated or disloyal.
In our experience, clients often find that switching advisers is usually far simpler than they expected.
Why people decide to switch financial advisers
People don’t change financial advisers on a whim. It usually happens for one or more of the following reasons:
- Lack of communication – You rarely hear from them unless you chase. Reviews feel rushed or box-ticky.
- Life has changed but the advice hasn’t – You’ve moved jobs, started a family, or shifted priorities, but your financial strategy hasn’t kept up.
- You’ve outgrown their service – They were a good fit at the start, but now you need more strategic planning or a more sophisticated approach.
- Transparency or trust issues – You don’t fully understand what you’re paying for, or you’ve lost confidence in their recommendations.
In our experience, a common realisation is that while investments are being managed, there hasn’t been a meaningful conversation about goals or life planning for some time.When these issues build up, it’s usually a sign that it’s time to make a change.
Common myths worth busting
Even when people recognise they’ve outgrown their adviser, a few persistent myths often hold them back from acting.
- “It’s disloyal to leave my adviser.”
Your finances are too important to stay in an unproductive relationship. Advisers know clients switch; it’s part of the profession. - “It’s a lot of paperwork.”
Most of the paperwork is handled by your new adviser. You sign the authorisation, and they manage the rest. - “I’ll have to move all my investments.”
Not always. In many cases, the servicing rights can be transferred without liquidating or reinvesting assuming the new adviser assesses these as suitable for your circumstances
Once these misconceptions are cleared up, the idea of switching usually feels far less daunting. The process itself is straightforward when you know what to expect.
How to switch financial advisers, step by step
1 – Check your current agreement
Start by reviewing the original terms you signed. Some firms include notice periods or exit fees, particularly for investment products. These are usually modest and in our experience, the cost of not switching often outweighs any short-term fees, though this depends on individual circumstances.Knowing the details up front means there are no surprises later.
2 – Line up your new adviser before leaving the old one
The smoothest transitions happen when your new adviser is ready to step in straight away. You don’t need to cancel first and then find someone new.
Look for someone who:
- Puts your life goals before products
- Is properly authorised and experienced
- Communicates clearly and regularly
- Feels like a genuine long-term fit
It’s much like changing doctors: you register with the new one before you formally leave the old.
3 – Sign a Letter of Authority
Once you’ve chosen your new adviser, you’ll sign a Letter of Authority. This gives them permission to speak to your existing adviser and product providers to gather the information they need to take over.
In our experience, this is often the point where people realise how straightforward the process is. Your new adviser handles almost everything from here. There’s no need for awkward conversations unless you want to give feedback personally.
4 – The handover happens behind the scenes
Your new adviser coordinates with product providers to transfer servicing rights and access your existing investments or plans. Depending on the products, this usually takes a few weeks. You might need to sign a few additional forms, but there’s rarely any downtime or loss of cover. In our experience, clients often find the process simpler than expected.
When switching might not be right yet
If your adviser is doing a solid job and the issues are mainly about communication, it can be worth having a frank conversation before moving on. Sometimes a simple reset is all that’s needed.
But if trust, transparency or strategic alignment have eroded, it’s time to make a change.
Porta’s Take
Switching financial advisers isn’t about being fickle. It’s about making sure the person guiding your financial future is genuinely the right fit.
At Porta, clients come to us when they want a human, plain-English approach, not a product push. We handle the handover, explain every step clearly and make sure your strategy reflects where you are now and where you’re heading next.
If you’re considering a switch, we’ll talk you through exactly what’s involved – clearly, calmly and without pressure.
If you’d like to explore your options, get in touch and to arrange a conversation.
Important information:
This article provides general information only and does not constitute personal financial advice. The information is based on our understanding of current regulations, which may change in future. Decisions about your finances should always be made based on your individual circumstances. If you’re unsure about the suitability of any course of action, you should seek regulated financial advice. The Financial Conduct Authority does not regulate tax planning, estate planning, trusts or wills. The value of your investments can go down as well as up, so you could get back less than you invested.
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