October 17, 2023
Louis Diamond Quoted
by Jennifer Lea Reed
Exactly how hard is it for a next-gen advisor unhappy with their firm to pack up and move elsewhere, clients in tow? It depends, and more than one would think.
Employment contracts vary wildly among RIAs, say the lawyers and recruiters who see large numbers of them on a regular basis, and the details often depend on the origins and culture of the firm, its size, its ambition, and whether the advisor in question started their career there or joined from another firm with an existing book of business.
“Some firms surprisingly have no employment contracts and are very loose. There, the team can move whenever they want to,” says Louis Diamond, president of recruiting firm Diamond Consultants in Morristown, N.J., and a next-gen leader himself. “Others have a ridiculously aggressive employment agreement that takes their desire for control too far, and then you see everything in between.”