In our nationwide practice, we commonly deal with financial advisors who are looking to make a transition from their current firm to another firm. We see several reasons for these transitions, including better opportunities at another firm, ethical problems at the current firm, and other similar issues that affect one’s earning potential and employment.
Every advisor may have a legitimate reason for leaving, but it is crucial that the advisor leaves in a legitimate, lawful manner that makes the transition as smooth as possible.
In this article, we want to emphasize how important it is to avoid “going it alone” when you make the transition from one brokerage to another. We strongly recommend that financial advisors who are looking to make a transition should hire an attorney to help them legally and efficiently transition to avoid any potential legal, ethical, and financial issues that could impact an advisor’s future employment in the financial industry.
Complex Employment Agreements
Perhaps the most important reason for hiring an attorney experienced in financial advisor transitions is because the employment contract is incredibly complex and requires great attention to detail before making the transition.
These employment contracts are drafted by skilled lawyers that are paid enormous amounts of money to make them bulletproof and beneficial for the institution. In most (if not all) cases, the employment contract is designed to protect the brokerage firm itself, not the financial advisor. If the advisor violates any provisions of the contract, it may cost him his clients, his reputation, and his future in the industry.
Employment contracts must be reviewed carefully before making a decision to leave the firm. While you may believe that the relationship with your employer is a certain way, the employment contract may say otherwise.
Keeping Clients
It is also crucial that you leave the right way to avoid losing clients. You must fight for your clients as long as it is legal to do so.
Financial institutions may use intimidation tactics to prevent you from taking clients to your new firm. They also may threaten to sue you for taking clients. In order to be fully prepared for such instances, we strongly recommend that you have an attorney on your side to assist you in your transition away from your current firm and into your new firm.
We Protect Advisors Against Former Employers
Making a transition from one firm to another can be one of the most difficult obstacles of your career. Any wrong moves can cause major problems for your career and your earning potential. Thus, we advice financial advisors who are looking to transition away from their current firm to contact us before undertaking such a monumental task on their own.
Vernon Litigation Group represents financial advisors nationwide against their employers, including banks, brokerage firms, trust companies, and other financial institutions. Our team of attorneys is experienced in all financial advisor transition proceedings, including mediation, arbitration, and litigation. Call us at 239-319-4434 or complete this contact form to discuss your case with an experienced financial attorney.