Hilliard Lyons Joins Broker Protocol Despite Recent Exists by Major Firms

Posted on March 30th, 2018 at 9:49 AM
Hilliard Lyons Joins Broker Protocol Despite Recent Exists by Major Firms

From the Desk of Jim Eccleston at Eccleston Law LLC:

Despite the fact that several major firms have withdrawn from the Protocol, Louisville, Kentucky based firm, Hilliard Lyons has agreed to sign on to the Broker Protocol. Founded in 1854, Hilliard Lyons currently has 70 branch offices with 376 wealth advisors. 

Over a decade ago, many firms, including Merrill Lynch, Morgan Stanley and UBS, agreed to follow the Protocol in an attempt to reduce litigation costs originated by efforts to prevent brokers from soliciting and doing business with 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 wirehouses because more than 1,600 smaller and independent broker-dealers and registered investment advisory firms have become signatories, thereby allowing them to recruit from the bigger firms without fear of litigation.

Nevertheless, Raymond James, Merrill Lynch and Wells Fargo have said that they will remain in the protocol for now, asserting that it was beneficial for both advisors and their clients.

The attorneys at Eccleston Law assist financial advisors in their employment transitions, negotiate their transition agreements (including employment agreements and forgivable loans), and defend reps in arbitration and litigation whether or not their firms are members of the Protocol.

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 investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, 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: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

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