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Sep 19, 2010 2:29 am

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?

Sep 19, 2010 1:36 pm

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.