I've heard a dirty little rumor that the EDJ contract that all new advisors sign is un-enforceable if you move to a RIA. I know I can talk to a lawyer to confirm and will do so if I choose to move that route but can anyone shed any light on this?
It depends on the state that you live in and when you were hired. When I was hired by EDJ, the contract was minimal and filled with loopholes. Also - in my state of residence, there is a contract clause whereby if one item of the employment contract fails to comply with state law, the entire contract is null and void. You should consult a lawyer for your situation to be safe. I do know they have gone after FAs before for such expenses, but I've yet to hear a case where they actually won or received punitive or compensatory damages.