How to Change Firms the correct way

or Register to post new content in the forum

35 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Jul 29, 2010 1:21 pm

OK, I already searched FINRA, and this site.  I can't find a step by step procedure to change firms and be 100% compliant with FINRA, the State, the old firm the new firm.  Surely, this must exist somewhere.

PS, I am going to a small firm and can't count on any home office help.  Just me and the compliance officer at the new firm and just want to be sure.

Jul 29, 2010 5:03 pm

No such list exists.  I have run a small firm for many years and seen the increasing complexity of the dos and don'ts when bringing in new brokers, be careful. 

I wonder why on earth you would be going to a firm that can't help you with this?  What other shortcomings do they have?  Perhaps you should reconsider this particular move.

Jul 29, 2010 5:11 pm

It depends on whether your old firm and new firm are both signatories to the "Protocol".  If they both are, then there is a very well-defined procedure in order to stay compliant.  If either one of them is not, then there is no one specific procedure; it depends on how your employment agreement at your old firm is worded, and in that case, you should probably consult with an attorney experienced in these matters.

Jul 30, 2010 11:52 am

You might get some better advice, if you offered a wee bit more in details. 18 months ago I switched from major bank bd, to indy. Like you, I came here looking for ideas, tips. The very fact/proof that you are trying to do the right thing, might actually help you, if you did wind up in arbitration. But, you need to provide some better details to get some good advice. Also, if you do hire a lawyer right now, they'll give you the "nothing is certain" line. Not saying you shouldn't have council, but that is what they'll tell you. 

Jul 30, 2010 5:31 pm

I have a perfectly clean U4, and everything else.  Leaving because it is a great opportunity.  Lawyers don't know crap.  Heck, have you seen how many are quitting and trying to become FAs.  Come on now, this can't be some huge secret.  How are you supposed to do it the right way if it is not layed out somewhere?

Jul 30, 2010 5:56 pm

You have a great deal to learn about regulatory matters!

Jul 30, 2010 7:25 pm

Seriously, how great of an opportunity can it be if they can't offer ANY transition support?  You must be chasing a monster payout.  Two months and you'll be wishing you went somewhere with some support.  Good luck!

Aug 1, 2010 10:54 am

Seriously, why do you people post if you have nothing to say?  Regulatory matters???  No I don't see I am what is called a "producer" .

Stay where you are folks if that is what you want, I am moving on.

Aug 2, 2010 1:30 pm

I think it goes like this:

1. Resign from the firm you're with, don't take anything with you.

2. Run a lot of advertisements in places your clients might see them. Send a generic notice to clients, but I'm not sure how you'd know who or where to send them.

3. Hope they contact you to move their accounts/plans.

I'm not trying to be funny, and I think anyone from the new firm will tell you the above, on the record.

Aug 4, 2010 11:09 am

all this advice and $2.50 will buy me a coffee at Starbucks.

Aug 4, 2010 3:15 pm

For someone who won't even spring for $2.50 for some advice, you seem awfully picky about the quality of the advice you're getting ITT.

Aug 6, 2010 1:12 am

Hire a competent lawyer and do not read any further.

I believe the "Protocol" goes something like:

1. Clean out your desk and computer of all personal belongings 2. Resign in person to your manager/supervisor 3.  Hand them a list of all your clients names. address and phone numbers 4. Take a copy of the same list with you and nothing more. No account numbers, SS#, nothing else. 5. Have your new firm send a "tombstone" letter to all the clients on previously mentioned list announcing the newest member of XYZ Financial with disclaimer stating "not a solicitation" etc etc 6. Start prospecting new business and hope your clients like you enough to call.
Aug 7, 2010 1:54 pm

aahhhh come on.  We brought over a 1 million producer from MS and they brought in TONS of boxes and files.  If you think people leave without at least a little more client information than that you are crazy.

Aug 7, 2010 11:28 pm

That is my understanding. If you can point me to a reputable source detailing this information please do. Otherwise your MS guy broke protocol. Especially if they brought client files from another captive firm that employed this person.

Aug 8, 2010 6:38 pm

EVERY broker we brought over brought TONS of files in boxes.  I personally witnessed at least 3 transitions with client information.  This is a big firm and reputable too.  They just pretend they don't know about it.

Aug 9, 2010 9:23 am

you really don't need "tons of files". You don't need anything.

In reality, you are permitted to take only the standard information available through normal channels - addresses, phone numbers. No account numbers, no history. And why should you need anything more than that?

See PM for more.

Aug 10, 2010 7:49 am

[quote=maybeeeeeeee]

EVERY broker we brought over brought TONS of files in boxes.  I personally witnessed at least 3 transitions with client information.  This is a big firm and reputable too.  They just pretend they don't know about it.

[/quote]

We moved to a large firm.  the lawyers gave us this speech on protocal.  

They gave us a written outline of the rules.  That is the official line.  

Then everyone winks at you.      The rules are there and everyone breaks them. 

No one goes after each other unless you do something way off base.    

Aug 10, 2010 12:20 pm

[quote=Jennifer Nettles]

[quote=maybeeeeeeee]

EVERY broker we brought over brought TONS of files in boxes.  I personally witnessed at least 3 transitions with client information.  This is a big firm and reputable too.  They just pretend they don't know about it.

[/quote]

We moved to a large firm.  the lawyers gave us this speech on protocal.  

They gave us a written outline of the rules.  That is the official line.  

Then everyone winks at you.      The rules are there and everyone breaks them. 

No one goes after each other unless you do something way off base.    

[/quote]

Thanks Jennifer.  Finally someone who knows the business and her stuff.  Do you still have the written outline of the rules?  How did your transition go?

Aug 11, 2010 8:05 pm

We got 90% plus of our clients.

Its a gut wrenching, horrible MF experience.

first week=lving hell

second week=worse

third week=a little better then hell

forth week=hell minus a bit more then above (3ed week)

fifth week=a tiny sliver of light

sixth week=head coming some what out of a%^

7-present=slow,nasty return to normalcy....  

any questions?

(ps:  protocol stuff:  be smart.  

lay low.  plan well.   shut mouth  

don't be a dick  (dont burn bridges) 

bring what you need to move book.    

Aug 10, 2010 4:13 pm

Congrats on your move Jenni