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Commissions transferred from producer to another producer

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Mar 9, 2011 2:37 am

After meeting with a prospect, ended up writing business.  During the beginning of the documentation process, they inform me they met with another person within my firm.  Asked if he wanted to discuss what we did with him, they said no and continued to finish our business.  My principle said I should have stopped and called the other advisor and wants to award him the commissions.  Are my only recourse within my own organization or is their a FINRA rule that addresses this?  Legal need?

Mar 11, 2011 4:16 pm

In principle, if you solicited, did work, and got the trade you should be compensated for it.  What your principal may be talking about could be a firm policy.  You may want to check with that.  If it's a great concern of yours, there could be a labor law theory that requires the firm to compensate you for your work with that client.  However, in terms of recourse, do you really want to sue the BD you're currently working for?  If not, keep records and perhaps consider a claim if you should leave that BD in the future.