Missteps when breaking away to form your own advisory firm can cost you dearly. Taking confidential client information or disclosing to clients before you leave that a move is imminent can result in legal action. And your actions may become difficult to defend.
It can also impact your reputation for confidentiality with clients. If you’ve acted inappropriately at one firm, what’s to keep you from acting inappropriately at another?
This Website Is For Financial Professionals Only
There are important protocols
to follow. Getting good legal counsel is the place to start. Following that advice to the letter is next in importance. Keeping your intentions secret and putting a moratorium on soliciting new business based on your transition are steps 3 and 4.
Voluntarily submitting information you cannot take with you is Step 5. Paying back any debt you owe your firm from signing bonuses as well as only saying positive things about your former firm wrap it up. Your former firm may even become a client one day, especially if you develop a beneficial niche. Doing things well and appropriately can only ensure greater success for you. And it's too great a risk to your business if you don't.