NFA Program ---> RIA

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Apr 8, 2009 1:14 am

If a broker is currently in the NFA program at a major wire house and would like to go the RIA route...is their a pretty good chance of being sued? Will the U-4 show when they've gone to an RIA like Schwab or Fidelity?


If your in the 2nd or 3rd year, do the amount they can sue go down? Any NFA gone through this yet?
 
 
 
 
 
Apr 8, 2009 11:25 am
bluetoon:

If a broker is currently in the NFA program at a major wire house and would like to go the RIA route...is their a pretty good chance of being sued? Will the U-4 show when they've gone to an RIA like Schwab or Fidelity?

If your in the 2nd or 3rd year, do the amount they can sue go down? Any NFA gone through this yet?



I cannot answer your question on getting sued, you will need to look at your contract.  As far a going RIA, you will register yourself as an RIA  and the U-4 will show that that information.  You can go to the SEC website to see what it takes to register.  Schwab and Fidelity have nothing to do with your U-4.  Schwab and Fidelity are simply a vendor that supplies services.

Hope this helps.

ash
www.FAfreedom.com - The Breakaway Experts
609-945-7100 x 101

Apr 18, 2009 11:34 pm

I've been told the RIA you setup can sign onto the protocol and then you can take what you would normally be allowed to, client names and some contact information (no account numbers, nothing else).  Seems the wire-houses can't keep the protocol club to themselves since that would be collusion.   Viva antitrust law!

I really don't see what basis your employer would have to sue ou, and I'm hard pressed to come up with an economic motive (if you're a trainee).