Regional Wealth Management Brands are on Fire—and Why You Should Exercise Extreme Caution

Posted on July 15th, 2019 at 3:46 PM
Regional Wealth Management Brands are on Fire—and Why You Should Exercise Extreme Caution

From the Desk of Jim Eccleston at Eccleston Law LLC:

Over the past 18 months, regional firms like Ameriprise, Raymond James, and Stifel have been accumulating assets at levels unseen before. Some reasons for this are noteworthy, such as culture, leadership, and post-financial crisis branding. Other reasons, however, require extreme caution, and review by competent securities counsel. Those causes are the recruiting deals, and the demographic-related joint productions and succession planning agreements and arrangements.

Recruiting Deals: While the leading firms are offering lucrative deals, the terms of those deals are filled with traps for the unwary. There is no such thing anymore as a “standard deal” that “everyone signs”. Months before advisors say “yes” to an offer, it is critical for them to retain competent securities counsel to review and negotiate their deal. That includes the prom note agreement and the employment agreement.

Similarly, demographics, especially age of the transitioning advisor, must be considered in the deal. Joint production agreements must be negotiated to guarantee their terms are accurate—and do not conflict with any other negotiated protection in the deal documents. They also must be consistent with the protocol in Broker Recruiting Protections. The same is true for succession planning documents, which must be very carefully negotiated.

While regional firms are the current darlings of financial advisors, the devil is still in the details!

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: james eccleston, eccleston law, eccleston law llc, eccleston, wealth management, regional wealth management, recruiting deals, financial advisors

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

August 15, 2022
FINRA Proposal Would Permit Private Homes to Serve as Non-Branch Offices

The Financial Industry Regulatory Authority (FINRA) has filed proposed changes to FINRA Rule 3110 with the Securities and Exchange Commission (SEC).

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.

August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.