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Protocol 101: What All Financial Advisors Needs to Know

Posted by Barry Champney on 10/3/15 11:12 AM

We know it can be scary to move to an Independent Broker Dealer and The Protocol for Broker Recruiting can sometimes be confusing- but it doesn't have to be!  Here's a crash course to help you sharpen your Protocol knowledge about making a move.

Anyone who was a Registered Representative in the 90's or earlier will remember the legal headache that came along with the thought of changing Broker Dealers. The decision to move was fraught with the risks of being sued by your old firm and losing your book of business. In 2001, FINRA created Rule 2140 which allowed clients to transfer accounts from firm to firm in order to follow their advisor when they move. The Protocol for Broker Recruiting of 2004 states that firms who joined Protocol must let RRs retain their client list when they move to another Protocol firm, free from the fear of being sued.

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Topics: Protocol, Financial Advising

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