If you leave edj?

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Oct 21, 2009 4:15 pm

If you leave EDJ do you get to take your book with you ?

Just curious as a guy in my town left EDJ shortly after seeing him pop on the radar with them and now has his own independent shop with Next...


Oct 21, 2009 4:22 pm

Yep, they send a letter to all your clients saying that you have moved on to a much better place and that you will be missed. They also give your new contact information and directions to your new office.

Oct 21, 2009 4:30 pm

They also slap you with a letter from a law firm in St Louis, saying it is illegal to take client information

Oct 21, 2009 5:55 pm

Why would anyone ever leave the #1 firm in the Nation?  More likely we'll leave you...

EDJ #1

Oct 21, 2009 5:57 pm

They also send you your contract, and highlight the part where it says you are not allowed to contact any of your clients.

Oct 21, 2009 7:54 pm
Weddle Me:

Why would anyone ever leave the #1 firm in the Nation? More likely we'll leave you...EDJ #1





Only reason your firm leaves is if the body gets cold..

Oct 21, 2009 7:55 pm
gettingstarted:

If you leave EDJ do you get to take your book with you ?Just curious as a guy in my town left EDJ shortly after seeing him pop on the radar with them and now has his own independent shop with Next...





Poor choice of b/d by the way...

Oct 22, 2009 9:53 am
gettingstarted:

If you leave EDJ do you get to take your book with you ?

Just curious as a guy in my town left EDJ shortly after seeing him pop on the radar with them and now has his own independent shop with Next...


 
You can take as much with you as you are able.  There are some pretty sticky rules about soliciting your previous clients, but in the end, most guys figure out a way to take most of the people they want with them. 
 
As to the guy in your town, my guess is that he didn't take any book with him at all.  If he barely had time to hit the radar screen he wouldn't have had time to either build a decent book or build relationships with the book he might have taken over. 
Oct 22, 2009 11:57 am
gettingstarted:

If you leave EDJ do you get to take your book with you ?Just curious as a guy in my town left EDJ shortly after seeing him pop on the radar with them and now has his own independent shop with Next...





Also if he was out less than 3 year, he owes $75K.

Oct 22, 2009 4:54 pm

actually, there is supposedly a way out of the 3 year deal.  I expect jones to modify the anchor sometime soon.  Apparently, you can go take your 65, no b/d required.  Split, take your clients, then pull your 7 over when the dust settles.  Put apparently they can't touch you if you leave and go fee-only as that is not their model.

Oct 22, 2009 5:04 pm

I am not the biggest Jones fan in the world since I formerly worked for them. If you sign an agreement don't try to wriggle your way out of it. Conduct yourself in an ethical manner and clients will respect you more for it. They didn't hold a gun to your head when you signed it. Don't take stuff that you shouldn't , leave after 3 years and just enjoy your freedom. If you built a business at Jones, you can rebuild your business somewhere else and own it.

Oct 22, 2009 7:46 pm
matt1957:

actually, there is supposedly a way out of the 3 year deal.  I expect jones to modify the anchor sometime soon.  Apparently, you can go take your 65, no b/d required.  Split, take your clients, then pull your 7 over when the dust settles.  Put apparently they can't touch you if you leave and go fee-only as that is not their model.

 



How can that be the case?  I thought they basically prohibited you from soliciting your former clients, regardless of the model?
 
Noggin, did you solicit any former clients, and if not, how did you survive early on?
Oct 22, 2009 8:35 pm

Do they actually  try to keep you from calling clients? How could they prove that and would it hold up in whatever venue they brought it to?

Oct 23, 2009 8:23 am

Here's what happened to me. I dropped my 7 entirely. I received two threatening letters from their law firm. The first asking me to return all of the files I stole from the office (I didn't, but whatever). The second was saying that they had information that I was soliciting clients by phone (I wasn't). It also stated that I was no longer registered, so that it would be illegal for me to solicit clients.



I sent out the standard letter (with a gift) and then waited for them to call. And call they did. Once they contact you, you are free to call them whenever you want.



They do attempt to keep you from calling. When you do your exit interview, they tell you that. Like someone else said, they send you a copy of your contract with the relevant parts highlighted.



This is where what matt says makes sense. I operate a fee-based and fee only business. However, if you are operating a fee only business, there should be no reason you can't solicit clients. It's a different type of business and according to the contract, you are technically not in the same business as Edward Jones. Which if you are not in the business, the non-compete and non-solicit doesn't apply.



However, what I just said does not constitute legal advice. Consult a professional.

Oct 23, 2009 10:34 am
B24:
matt1957:

actually, there is supposedly a way out of the 3 year deal.  I expect jones to modify the anchor sometime soon.  Apparently, you can go take your 65, no b/d required.  Split, take your clients, then pull your 7 over when the dust settles.  Put apparently they can't touch you if you leave and go fee-only as that is not their model.

 



How can that be the case?  I thought they basically prohibited you from soliciting your former clients, regardless of the model?
 
Noggin, did you solicit any former clients, and if not, how did you survive early on?
B24- I didn't solicit any former clients unless they called me until a year was up. If you built a business when you were at Jones, you just start building it again. There are always prospects to call on. It gives you a chance to build the business that you want to. An existing A share portfolio that is well diversified will give you about 250 dollars in gross on a yearly basis. Is that a client I would really want? Those are a lot of the ones like that I left behind. It's not easy and my timing is probably among the worst in history as far as moving B/D but I have survived thus far and I own my book now. I never have to worry about the haircuts again and have the ultimate in investment flexibility and availability. I am happy with my choice and I have left a great deal of my bitterness behind with the change.