When an advisor leaves one firm and joins another, post-employment obligations may interfere with a smooth transition. A former employer may claim damages on the basis of many kinds of documents that governed the advisor's employment. Conflicts, especially those related to client information, may even invite regulatory scrutiny. A successful transition requires careful planning to protect each firm’s business interests.
The latest Compliance Review from Schwab explores the key legal and regulatory issues firms should consider when recruiting advisors, or when advisors leave the firm.