From Deutsche Bank to Credit Suisse and Barclays, brokers are in transition for a variety of reasons – some voluntary and some obligatory. Either way, for a FINRA registered representative, leaving their broker-dealer can be a nerve-wracking time. Regardless of the reason for leaving, the ultimate goal is always the same: get to your new firm and bring with you as many clients as you can without getting sued by your old broker-dealer in a FINRA Arbitration.
But, easier said than done. In addition to the logistical challenges, there are also some legal hurdles that must be cleared first.
The first major question that should be asked is: “Does the Protocol for Broker Recruiting apply?” If either your old firm or new firm are not signatories to it, then your answer should be “No.” If both your old firm and your new firm are signatories to it, then the answer to that question should be “Yes” – but some restrictions may apply.