In today’s financial landscape, the notion of independence has taken center stage for financial advisors. Top firms are imposing stringent compliance measures, facing financial penalties for misconduct, and subjecting advisors to invasive surveillance. As a result, many advisors feel trapped and long for personal freedom. Compensation structures are also becoming uncertain, leaving advisors unsure about…
Today, the Consumer Financial Protection Bureau (CFPB) has taken action against Bank of America for engaging in illegal activities that harmed its customers. The bank has been ordered to pay over $100 million to affected consumers and an additional $150 million in penalties to the CFPB and the Office of the Comptroller of the Currency…
Remember, Wells Fargo lost almost 4,000 advisors over years due to the exact headline risk. If this headline is picked up heavily in the press it could have far reaching consequences for advisors’ practices. At the least, these types of headlines do not bode well for client perception. Particularly since Bank of America leadership has…
In a scenario reminiscent of The Clash’s iconic song “Should I Stay or Should I Go,” First Republic advisors find themselves facing tough decisions. While JPMorgan Chase (JPMC) assures them that they will be treated differently, respecting their unique culture and franchise, skepticism abounds. Advisors are being enticed with promises that their former offices will…
In today’s podcast, they discuss the employment and retention contracts presented to First Republic Advisors by JPMorgan and the points they should be aware of when reviewing these documents. Meet Rogge Dunn: Rogge Dunn handles employment, partnerships, FINRA, class actions, arbitration, defamation, privacy issues, shareholder oppression, “business divorce,” non-competes, trade secrets, whistleblowing, and significant personal…
Overall, the acquisition of First Republic’s wealth management business by JPMorgan presents both opportunities and challenges for financial advisors. While the acquisition will give First Republic advisors access to new vast resources, they will also need to navigate the challenges of integration, client retention, and cultural differences. Ultimately, success will depend on the ability of…
No doubt it has been a brutal six-week journey for First Republic advisors. Advisors may think they should be rewarded for their loyalty in staying the course when other colleagues fled early. The path of least resistance has certainly been to stay put, however, in doing so, advisors face changes in compensation, more bureaucracy, less…
There is a tremendous sigh of relief for First Republic advisors and their clients after a very chaotic six weeks. Now, instead of the urgency to leave, advisors have a new great added choice of platforms to choose from to continue to service their clients. We hope to add some experience and historical precedent of…
The run on First Republic Bank driven by clients’ fears has left financial advisors in quite a quandary. Many advisors are shell shocked by what’s happened and are in a state of confusion about the decision to stay or go. One group clearly has decided to be on the go, some have already departed, and…
For the First Republic advisor on the move, it is essential to have legal representation in place as soon as possible. Ideally, counsel would have familiarity with First Republic contracts to begin with as well as with the go to firms such as: Morgan Stanley, UBS, Wells Fargo, Rockefeller, JPMS, or RBC. Any restrictions contractually…