Podcast
>
Ep 111: What Happens When an Advisor Leaves?
Ep 111: What Happens When an Advisor Leaves?
Welcome to the Financial Advisors Want to Know Podcast! I’m Catherine Tindall, CPA with Dominion Enterprise Services, where we help financial advisors navigate income tax planning and compliance for their firms.In this episode, I sit down with attorney Andrew Shedlock to discuss the legal and practical considerations that come into play when a financial advisor leaves a firm. We explore what advisors should understand about their employment agreements before making a move, including restrictions around client communication, confidential information, solicitation, and potential litigation risks.
Share:
Episode 111: What Happens When an Advisor Leaves?
Guest: Andrew Shedlock
Overview
Welcome to the Financial Advisors Want to Know Podcast! I’m Catherine Tindall, CPA with Dominion Enterprise Services, where we help financial advisors navigate income tax planning and compliance for their firms.
In this episode, I sit down with attorney Andrew Shedlock to discuss the legal and practical considerations that come into play when a financial advisor leaves a firm. We explore what advisors should understand about their employment agreements before making a move, including restrictions around client communication, confidential information, solicitation, and potential litigation risks.
Key Takeaways:
✅ Review Agreements Before a Transition Is on the Table
Advisors should understand their employment agreements, what information they can take, how they can communicate with clients, and where potential legal risks exist well before resigning.
✅ Employment Agreements Need Regular Review
Laws and court decisions evolve, so an agreement drafted years ago may no longer offer the protection a firm owner expects. Reviewing agreements with counsel regularly can help identify potential gaps.
✅ Be Specific About Confidentiality and Solicitation
Small differences in contractual language can have significant consequences. Agreements should clearly define confidential information and what actions constitute client solicitation.
✅ Build a Firm People Want to Stay With
Competitive compensation, growth incentives, and potentially equity or other participation can align an advisor's success with the firm's success and encourage long-term retention.
✅ Focus on What You Can Control During a Transition
You may not be able to change an agreement signed years ago, but you can control how you prepare and act before and after leaving. Understanding your obligations and planning early can reduce unnecessary legal risk.
🔗 Connect with Andrew
LinkedIn: https://www.linkedin.com/in/andrew-shedlock/
Website: https://www.kutakrock.com/
🔗 Connect with Catherine
LinkedIn: https://www.linkedin.com/in/ctindallcpa/
Newsletter: https://dominion-enterprise-services.kit.com/9944b047d9
Email: admin@dominiones.com
