What are the biggest compliance and legal issues I should be aware of?
Sam Edgerton and Chad Weaver, Edgerton & Weaver, LLP If you are considering leaving a wirehouse and going independent, there are several legal and compliance issues that you should consider before making your decision. A little extra time and attention paid at the onset of the transition can ultimately pay off in spades. From a legal point of view, regardless of whether you ultimately choose to join a broker-dealer or a registered investment advisory firm, you should pay particular attention to your current employment agreements. For one, if you have an outstanding promissory note, you should review its terms before making the move. The terms of such a note may direct you to hold off for a particular period of time before terminating your employment. Second, most wirehouse employment agreements have non-compete clauses. Depending upon which state you live in, these non-compete clauses may or may not be enforceable. Notwithstanding, your agreement may also include a provision protecting
