Protocal Signatory question
Anyone know what a firm needs to do to remove itself from being a signatory to protocal? How must it notify the advisors?
Not sure they are required to notify the advisors. However, I would guess that the Firm an FA would be going to would be required to determine if the Firm they are hiring from is a protocol Firm. It only makes good business sense because if you are recruiting an FA who is not from a protocol Firm there are a whole lot of different aspects of a transtion to keep in mind (potential legal fees, non-competes, client information claims, etc.). If the FA is from a protocol Firm, the transition gets much more clear.
The firm withdrawing from protocol needs to provide the other signatories with 10 days notice. That’s the only requirement.
Reg S-P and the courts sometimes create a form of protocol-like protections for advisors and clients.