How to deal with Edward Jones' 12 month non-solicit?
Recently, 2 guys have left my region to join Wells. They’ve been able to bring almost all of
their assets with them. So the question
is, how in the heck are they doing this with the non-compete??? I would call them myself and ask, but our
regions had recently joined, so I never got the chance to get to know them well
enough to trust making that call.
I’m really interested in knowing this as I will be leaving
to buy a book in my home-town from a retiring advisor this summer. So of course I want to bring as many of my
accounts I’ve accumulated the past 4 yrs with me as I will be splitting
commissions with the vet FA for the next 2-3 yrs on their old assets.
So, do I get transfer paperwork ready for all the accounts I
want to bring over and stop by their house the day I resign? Should I contact my top clients before
leaving so it isn’t such a surprise? How
soon should I start telling some of them?
I know not to put anything in writing asking them to come
with, but any other insight would be appreciated.
#1 its not a non-compete from my understanding. It's a non-solicitation.
#2 Read some of the threads here. Most of this stuff has been covered.
#3 Talk to an indy attorney and a recruiter from the b/d you are going to, to discuss transition
Last thing.... call those guys. Give them a different name not your real one and ask. Can't hurt.
Great advice on the attorney.
When I left my last firm I sent a letter (required by the CFP) to my former clients with my new address. No solicitaion. Just stating facts. I had the attorney review it before I mailed it.
Then, if clients call YOU... you are free to talk.
DO NOT LET YOUR CLIENTS KNOW BEFOREHAND, if EJ contacts any of your clients, (which they do sometimes) they will ask if you had contacted them beforehand and if so they WILL come after you. If you have a good relationship with your clients, they will come with you. I moved 80% of mine and would of taken more but only took the clients that I wanted to continue to work with. Good luck on the move. Best thing I ever did.
Make sure all accountholders have your cellphone number. I carefully approached my big clients two months before leaving EJ and gave explanation for forming my own RIA. EJ did contact all clients through a CSR (new salesmen in training) but of course the smaller clients had no idea what happened to me. Also, do not call your regional leader and tell him you'd like to resign - call HR and ask who is in charge for your region. The contract states that you must submit resignation to a principal at home office in writing. There is a big disconnect between region and home office, my RL locked me out of my office even though home office granted me the following Monday to move furniture and my belongings. RL also stated to my BOA she would be fired for granting access. Home office did not like that at all.