Wirehouse advisors often have an opportunity for “instant” growth by purchasing a book of business from a retiring advisor within their firm. While this sounds simple enough and can double the size of an advisor’s book overnight, it requires careful examination from both pragmatic and legal standpoints.
Before proceeding, however, the first question that an advisor needs to ask himself is: “Do I believe I am at the right firm for the foreseeable future?” Advisors who buy books of business are bound by a variety of agreements that could tie them to their current firms for a long time.
We reached out to leading attorneys in the industry to get their thoughts. What are the common elements in wirehouse contracts that tie advisors to their firms after they buy a book internally?
