When advisers leave, who owns the client?
TISA is to establish an adviser protocols project to consider whether the US pan-industry agreements covering the move of individuals between advisory firms, or the acquisition of one firm by another, can be adapted for the UK market.
At a recent TISA seminar entitled ‘When advisers leave, who owns the client?’ delegates questioned the robustness and enforceability of non-solicitation and non-compete clauses in the agreements that advisers may have with their employers.
It was pointed out that in the US the volume of litigation around this issue has declined sharply following the introduction and widespread adoption of ‘adviser protocols’. These documents set out standard procedures to be followed where advisers move between advisory firms, or where one firm is acquired by another.
Malcolm Small, TISA Director of Policy says:
“The seminar highlighted that the current arrangements create uncertainty for firms, advisers, providers and most important of all, clients. TISA was asked to look into the American protocols and determine whether they could be adapted for use in the UK market, or otherwise, how the current situation could be ameliorated.
“TISA is therefore setting up an executive committee to drive this project and is seeking nominations to participate from a wide range of stakeholders including larger IFA firms, banks and building societies, providers, restricted advisory firms, wealth managers, private client stockbrokers/ discretionary investment managers and trade bodies.
“As ever, we will be seeking to establish clarity for clients and firms, as well as seeking to save the industry time and cost, particularly legal fees.”
It is expected that the first meeting of the executive committee will be held in September. Nominations for membership should be sent to Dee Wastnedge dee.wastnedge@tisa.uk.com by Friday 29 June 2012.
Ends……
For further information, please contact:
Malcolm Small, Director of Policy, Mobile: 07989 500771 Email: malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of savings vehicles & services and centralised investment propositions.