What is Client Onboarding?
Client onboarding is the systematic process of converting a prospect into a client and establishing a functional advisory relationship. It encompasses everything from initial data gathering through account opening, asset transfer, and implementation of the investment strategy. A well-designed onboarding process sets the tone for the entire client relationship.
Onboarding Process Steps
1. Discovery and Data Gathering
- Financial questionnaire completion
- Document collection (statements, tax returns)
- Risk tolerance assessment
- Goal identification and prioritization
2. Documentation and Agreements
- Advisory agreement execution
- Form ADV Part 2 delivery
- Privacy notice acknowledgment
- Discretionary authorization
3. Account Opening
- Custodian account applications
- Beneficiary designations
- Online access setup
- Linked accounts configuration
4. Asset Transfer
- ACATS transfer initiation
- In-kind vs. liquidation decisions
- Cash transfer coordination
- Retirement account transfers
5. Implementation
- Initial portfolio construction
- Tax-lot selection
- Investment policy documentation
- First billing setup
Onboarding Timeline
| Phase | Duration | Key Activities |
|---|---|---|
| Discovery | Week 1 | Data gathering, initial meeting |
| Documentation | Week 2 | Agreements, account apps |
| Transfer | Weeks 3-4 | ACATS, cash movements |
| Implementation | Week 5 | Trading, portfolio setup |
| Follow-up | Week 6 | Review, welcome package |
Best Practices
- Checklists: Standardized process documentation
- Technology: Client portal for document collection
- Communication: Regular status updates
- Welcome Kit: Professional onboarding materials
- First Review: Schedule within 90 days
