When markets fall: a small RIA's plan for contacting clients, and what to record
When markets fall sharply, a small RIA does best with a plan made in calm times: a short prepared note to all clients, a list of who gets a personal call first (clients drawing income, recent retirees, anyone who has been anxious before), a careful process for requests to sell, and a record of every conversation on the client's file. Afterwards, spend thirty minutes reviewing what worked.
The market drops eight percent in a week. The phone starts ringing, and the advisor spends three days on calls with whoever calls loudest. Some of the clients who most needed to hear from the firm, the ones drawing income and the recent retirees, never get a call. Nobody wrote anything down, so a year later nobody can show what was discussed or why a client sold.
What should the plan include?
| Part | What it is |
|---|---|
| A prepared note | Three or four sentences: what's happening, what you're watching, how to reach you. Sent to everyone |
| A call-first list | Clients drawing income, recent retirees, large cash needs coming up, anyone anxious in past drops |
| A process for sell requests | Talk it through against their goals and IPS; if they still want to act, take the instruction properly and record it |
| A recording rule | Every conversation gets a short note: date, what was discussed, what was decided |
| A review | Thirty minutes afterwards on what worked and what to change |
How do you build the call-first list?
- Clients taking regular withdrawals.
- Clients who retired in the last two years.
- Households with a large cash need in the next year.
- Anyone who called in a panic last time.
Review the list once a year, alongside client reviews.
Handling a request to sell
- Listen first, and ask what's worrying them.
- Revisit their goals, time horizon and IPS together.
- If they still want to sell, confirm the instruction through your normal process.
- Record the conversation and the decision, including that you discussed the alternatives.
- If the IPS no longer fits how they feel about risk, schedule an IPS review.
A worked example
Take a hypothetical two-person RIA with a plan written the previous spring. When markets fall sharply, the prepared note goes to all 70 households the first morning. The advisor calls the twelve households on the call-first list over two days. Two clients ask to sell; one changes their mind after reviewing their goals, the other confirms the instruction, which is processed and recorded. Every call gets a note on the household. A month later the two of them spend thirty minutes on what to change next time.
What are the common gaps?
- Calling whoever calls first, not whoever needs it most.
- No record of conversations or decisions.
- A sell instruction taken on the phone with no follow-up.
- No IPS review for a client whose risk tolerance clearly changed.
When is this overkill?
It isn't. The plan takes an hour to write in calm times and saves days when markets fall.
How Advorra fits
Advorra keeps communications, tasks and IPS versions on each household, with trades logged on a blotter linked to the strategy, so the call notes, any sell instructions and a follow-up IPS review sit on the client's record. See the product page, or read about client meeting notes and when to update an IPS.
One thing to do this week: write your three-sentence market note and your call-first list, and save them where you'll find them.
An operations plan for client communication, not investment advice.
Questions advisors ask
Should we contact every client during a market drop?
Many firms send a short note to everyone and call the clients most likely to be affected or worried. Decide the list in advance.
What if a client wants to sell everything?
Have the conversation, refer to their goals and IPS, and if they still want to act, follow your normal process for instructions and record their decision.
Should we record these conversations?
Yes. A short note of what was discussed and decided protects the client and the firm.
When should we write the plan?
Now, while markets are calm. A plan written during a drop is usually rushed.
Is this investment advice?
No. It is an operations plan for client communication.
See it on a demo firm
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