In spite of the documented benefits of partnering with a TAMP (turnkey asset management platform), including freeing up time for clients, accessing more sophisticated investment options, and saving money, common misconceptions about the roles and capabilities of TAMPs still persist, keeping some advisors from exploring partnership options.
For many, it’s wariness about the transition process itself holding them back from either switching from a legacy TAMP or partnering with a TAMP in the first place. But advisors interested in leveraging the time-savings, cost efficiency, and investment management benefits of a modern TAMP don’t need to let the fear of an arduous transition hold them back. Below, we address three common misconceptions about TAMP transitions to help you make a more informed decision about partnering with a TAMP.
Paperwork is perhaps the biggest fear keeping advisors from making a change. After all, who wants to approach hundreds of clients asking for signatures? But the reality is far more nuanced and there are multiple potential drivers to determine what type of documentation or signatures are required for your transition.
Whether you need client signatures largely depends on your custodial setup. For example, if you're using Fidelity's Separately Managed Account Application, you might not need any client signatures at all. Even when signatures are required, TAMPs with experienced, dedicated transition support teams can streamline the process with a focus on minimizing disruption.
While it’s true your transition will require careful planning and could take weeks or even months depending on your firm’s size, a TAMP that’s more partner than platform will make sure you’re clear about every step of the process. Your transition roadmap should include:
The key is having an experienced, highly skilled consultant dedicated to your transition – someone who understands your firm's unique setup and can guide you through each phase. They will coordinate with specialists as needed, whether that's operations experts for billing setup or investment management professionals for model mapping.
We talk to a lot of firms concerned about having to overhaul their existing billing process to fit a TAMP’s structure. In reality, though, a modern TAMP should be flexible enough to recreate your existing billing practices without disruption or major changes (unless they’re appropriate for your firm’s needs), allowing you to:
Maintain your preferred frequency (monthly or quarterly)
Preserve your payment methodology (advance or arrears)
Retain existing fee schedules and householding arrangements
Keep your current payment method (invoice or direct debit)
The goal is to enhance your billing efficiency without disrupting your established processes. In fact, many firms find their billing becomes more streamlined after the transition, with better reporting and oversight capabilities.
At GeoWealth, we’re more than focused on your smooth transition and onboarding process; we’re firmly dedicated to providing the clarity, context, and confidence firms need to trust they’re working with a true partner – right from the first meeting. That means offering full transparency into our transition approach, which includes a dedicated Strategic Consultant and a timeline tailored to your firm’s unique needs. In general, our transition process follows the 10 steps outlined below.
Learn more about how GeoWealth can help you take advantage of all the benefits a modern TAMP has to offer – without an arduous and complicated transition process. Click here to get in touch with our team.
P.S. Now that we’ve addressed some common TAMP transition misconceptions, take a closer look at what you should be looking for from your TAMP partner as part of the onboarding process in this article, Expectation vs. Reality: Challenging the Traditional TAMP Onboarding Illusion.
The information contained herein does not constitute investment advice or a solicitation. This article is for dissemination of general information only. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Investments are not guaranteed and are subject to investment risk, including possible loss of the principal amount invested. Past performance is no guarantee of future results.