Working for two companies, conflict of interest
I am currently a financial advisor trainee for a big wealth management company. As a side job, I am thinking about joining World Financial Group for some side income. This is not an office job, and the main business of WFG is just recruiting people to get comission off their sales. I know, a lot of people are against this business model, but if it gets me some money on the side, hey, why not do it. The best part about WFG is that you work at your own pace, so you put 100% of your efforts at your main job, and if you have time, you can work at WFG on the side. I am wondering if my wealth management company will find out if I am working at WFG. I will not be making a single sale at all while at WFG, I will simply be recruiting people to join my team. Let me reiterate this last important point, I will not be making any sale or transaction, I will just be recruiting people. WFG is aware that I am currently working at a wealth management company, and they are fine with it.
If my wealth management company finds out, what is the worst thing that can happen?
If they find out you'll most likely be termed for cause with a perm mark on your U5. A term comment could read like: dual employment (association) without approval OR failure to disclose dual employment. Also you risk FINRA inquiry and possible sanction from them. Always best to disclose.