Citigroup Announces its Departure from the Broker Protocol

Posted on January 11th, 2018 at 4:08 PM
Citigroup Announces its Departure from the Broker Protocol

From the Desk of Jim Eccleston at Eccleston Law LLC:

Last month, Citigroup Global Markets (Citigroup) announced that it had pulled out of the Protocol for Broker Recruiting (“Protocol”). Citigroup’s announcement was the latest of the major firms to make this announcement, as both Morgan Stanley and UBS made similar statements over the last several months. 

Over a decade ago, many firms, including Citigroup, agreed to follow the Protocol in an attempt to reduce litigation costs created by attempts to prevent brokers from calling their former customers. The Protocol allows brokers to take with them only customer names, addresses, phone numbers, emails and account titles when they transition to other firms.

However, in recent years, the Protocol has not served a useful purpose for larger firms because more than 1,600 small broker-dealers and registered investment advisory firms have become signatories, allowing them to recruit from the bigger firms without fear of litigation.

The attorneys at Eccleston Law assist reps transition, negotiate their transition agreements, and defend reps when firms file suit.

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

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