I was working with an advisor recently, who had issues with one of those third party administrators (TPAs) I warn people about. Yeah, you know the folks who do payroll as are TPAs on the side.
The problem here was that the TPA promised the advisor they could do certain administrative things for the client and they didn’t. So the advisor was forced to take the business to another TPA to fix all the errors made including making improper allocations based on previous years’ compensation. The former TPA agreed to pay for the administrative corrections and then it took forever for the new TPA to ever get that payment.
I learned from my good friend and master salesman, Richard Laurita that you never betray or take advantage of those who bring you business. If you do something that makes the advisor uncomfortable to do business with you, they’ll never refer business to you again.