Success Story: Moving Your Practice Without Restraint
Bruce and Jake had learned about Broker Protocol, but their current firm was no longer a member. They consulted a recruiter, who tried to explain what they could and could not do when migrating their practice. Yet they were somewhat skeptical of the recruiter’s understanding of the rules of FINRA and the SEC and the parameters in their rep agreement contracts.
Bringing on the AdvisorLaw team
To be on the safe side, Bruce reached out to AdvisorLaw and was able to speak with an attorney, who could help determine what would make the most sense and assist with the process. AdvisorLaw provided Bruce and Jake with a framework and guidance in preparation for their migration.
Once they pulled the trigger and provided their voluntary resignations to the bank wire house firm, Bruce and Jake began the laborious task of migrating their practice while navigating within rules and guidelines in an effort to avoid any future litigation.
Unfortunately, the bank wire house firm did not allow Bruce and Jake to transition quietly. One week following their resignations, Bruce and Jake received a letter from a law firm with an exhaustive list of obligations which it alleged that Bruce and Jake owed the firm, based on their rep agreements. Slightly shaken, Bruce and Jake forwarded the letter to AdvisorLaw.
AdvisorLaw assured Bruce and Jake that the letter was a typical step taken by many firms in such cases and that, as they had followed all guidance provided, AdvisorLaw felt certain that Bruce and Jake could defend their position to a judge. AdvisorLaw responded to the law firm that sent the letter, notifying it that Bruce and Jake had representation.
Later that month, the bank wire house firm’s attorney filed a temporary restraining order, seeking an injunction to limit Bruce’s and Jake’s contact with their prior clients. Very quickly, AdvisorLaw accompanied Bruce and Jake to the court to contest the temporary restraining order. Prepared to defend their position, Bruce and Jake had solid documentation, accurate notes, and a plan to prevail.
When the judge decided in Bruce’s and Jake’s favor, the bank wire house firm lost interest in the expensive litigation that would be required for it to continue its pursuit.
Now, six months later, Bruce and Jake have successfully moved 85% of their book of business, leaving behind some C and D clients, and have already begun to grown their practice.
*Names and some details have been changed to protect anonymity.
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