Broker Protocol Joinder Agreement

  • Published
  • Updated
  • 2 mins read

Broker Protocol Joinder Agreement

  • Post author:
  • Post category:Uncategorized

If you`re a financial advisor or broker dealer, you may have heard of the Broker Protocol Joinder Agreement. This agreement aims to protect the interests of both the broker dealer and the advisor when transitioning between firms.

The Broker Protocol Joinder Agreement is a legal document that outlines the rules and regulations that govern the movement of brokers and financial advisors between firms. It is a voluntary agreement between firms that have signed up to the Broker Protocol. The protocol was established in 2004 by Merrill Lynch, UBS, and Smith Barney, and has since been joined by over 1,700 firms.

The agreement allows advisors to move from one firm to another without fear of legal action or reprisals. Under the agreement, advisors are allowed to take certain client information with them, including client names, addresses, phone numbers, and email addresses. However, they are not allowed to take any client account numbers or financial information.

The Broker Protocol Joinder Agreement is designed to make it easier for advisors to move between firms, without causing disruption to their clients. It also helps to prevent litigation between firms that can arise when advisors leave to join a competitor. By allowing advisors to take certain client information with them, the agreement aims to minimize the disruption that can occur to clients when their advisor leaves.

While the Broker Protocol Joinder Agreement is voluntary, many firms have decided to sign up to it. Firms that sign up to the protocol agree to follow the rules and regulations outlined in the agreement. This includes not taking legal action against an advisor who has left to join a competitor, provided that the advisor follows the rules of the protocol when leaving.

If you`re a financial advisor or broker dealer, it`s important to understand the Broker Protocol Joinder Agreement. By signing up to the agreement, you can make it easier to transition between firms and protect yourself and your clients from legal action. Overall, the Broker Protocol Joinder Agreement is a valuable tool for firms looking to attract and retain top talent in the financial industry.