Do some firms (i.e. AGE, EJ) allow one

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Jul 26, 2005 11:43 am

Do some firms (i.e. AGE, EJ) allow one to keep their clients once they leave the company?  For instance, if I were to work for one of the companies listed above and then decided to go Indy, could I transfer my clients to my new business?  Just curious to know.  Look forward to your replies.

Jul 26, 2005 12:44 pm

NO!!!!!!   and they will do everything in their power to prevent you from being able to contact your former clients.  They can sue you if you have a non compete agreement and you aren't very careful about how you do go about contacting former clients.  The minute your butt is out of the chair in your office they will have people calling and contacting your clients, sending letters and trying to do damage control. If you take things from your office such as client lists or information and they find out about it you can also be sued.


You will not be able to do a blanket ACAT form all your clients which means you will need to contact them, one by one, and persuade them to follow you.  It can be done, many of us have done it, but you need to contact an attorney or get legal advice and not just information from anonymous people on the internet.

Jul 27, 2005 11:14 am

Actually, while the vast majority of firms (like virtually every wirehouse & EDJ) put you under contract that subject you to what Babbling describes, there are some exceptions.  Unless things have changed there recently, AGE does not.  Also Raymond James & Associates does not; reps own their books there.  I'm not aware of any more, but there may be some other regionals who also don't.

Jul 27, 2005 12:06 pm

Most wires will have some sort of "gentlemen's agreement" with any FAs that leave because they know that they will be bringing someone over from another firm at some point in time.  It is not 100% free-and-clear, but it is easier than, say, moving from AmEx where they go after you like madmen.

Jul 27, 2005 2:16 pm

Unless things have changed there recently, AGE does not.


That's good to hear.  I thought that I understood that if you are an employee of the firm AGE or RJ (w-2 wages) you are subject to the non compete, but if you were an independent there was no non compete.  I know when I switched to my current B/D as an indy, there was no agreement to sign.  But it was dicey in dealing with Jones.

Jul 27, 2005 9:24 pm

It's kind of interesting how the companies in the industry all work so
hard to rob you of your clients if you don't like working where you
work.



Fortunately, it is very rare for a successful broker to have problems
taking his clients to his new firm.  If it were impossible to take
clients, no one would ever move.