Brokers Must Proceed With Caution When Going Independent

Posted on June 23rd, 2017 at 9:22 AM
Brokers Must Proceed With Caution When Going Independent

From the Desk of Jim Eccleston at Eccleston Law LLC:

Bob Veres, a columnist for Financing Planning, has published an article which outlines issues for brokers to consider when deciding to go independent.  

First, clients need to know what employment contracts they signed in the past. For instance, many brokers have signed a variety of agreements without reading the documents and they simply just clicked through and electronically signed certain acknowledgements and certifications.

Second, even if a firm follows the Broker Protocol, there are other solicitation restrictions brokers have to keep in mind. For instance, many brokers have shared accounts, inherited accounts, and a revenue-share with a team member who is not transitioning. Eccleston Law recently has noticed that team agreements impose restrictions that reps must consider before moving.

The securities attorneys at Eccleston Law, LLC offer legal guidance for brokers and advisors who are seeking to go independent. If you are looking to become a "breakaway broker”, we can help protect your interests and ensure an easy breakaway broker employment transition.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Bob Veres, Financial planning

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015. 

 
 
June 23, 2022
Eccleston Law LLC Investigates Recovery Options for NRIA Investors

Headquartered in Secaucus, NJ, National Realty Investment Advisors (NRIA) recently declared bankruptcy amid investor redemption requests, federal and state investigations, and unsustainable debt.

 
 
June 22, 2022
SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

The Securities and Exchange Commission (SEC) has filed suit against Michael Mooney, Britt Wright, and Penny Flippen pertaining to their engagement with a Ponzi scheme, which raised at least $110 million from nearly 400 investors.