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Legal issues related to hiring and firing advisors are becoming more commonplace, says RIA counselor Brian Hamburger.
As the independent registered investment advisor channel continues to grow, firms are getting larger; many RIAs now have national aspirations, acquiring firms and, increasingly, recruiting new advisors from established companies.
“With that comes some burdens that we can’t overlook,” said Brian Hamburger, president and CEO of MarketCounsel, speaking at the DeVoe & Company G2 Forum this week. “Not only does the potential for client-related issues and disputes increase, but employment-related challenges are to be expected.”
“As those challenges emerge, the founding advisors are likely to encounter human resource issues and conflicts as diverse as violations of the firm’s own policies and procedures, issues like sexual harassment or discrimination and similar claims, consistent supervision of staff and effective implementation of client relate
Wealthmanagement.com, Christine M. Conboy, VP and assistant general counsel at J.P. Morgan, sought to make those internal divisions clearer. She wrote that the bank s participation in the agreement applies only to “registered representatives in the J.P. Morgan Advisors line of business” with the title of “wealth partner” or “wealth advisor.”
“No other divisions, businesses or employees of JPMS or its corporate affiliates or parents are covered by the Protocol,” the letter read. “That means that registered representatives working in Chase Wealth Management, JPMorgan Private Bank, or JPMorgan Chase & Co. are not covered by the Protocol.”
The letter comes several weeks after the company filed several complaints in federal court against former branch-based advisors allegedly soliciting clients. It s not clear the clarification letter is in reaction to those cases.
FINRA Examining Certain Reps Who Took PPP Loans The scrutiny stems from registered reps who obtained PPP loans through undisclosed outside business activities, but a letter to one such rep is not part of a targeted examination or ‘sweep,’ FINRA says.
The Financial Industry Regulatory Authority is examining certain registered reps who received loans through the government’s Paycheck Protection Program (PPP), according to a letter obtained by
WealthManagement.com. Securities attorneys and analysts say the scrutiny concerns reps with outside businesses who took loans for those entities but never disclosed the existence of those businesses to their member firms.
FINRA Postpones In-Person Arbitration, Mediation Until April 2 The agency has continued to push back the resumption of physical arbitration and mediation proceedings because of COVID-19, though hearings can be held via teleconferencing or Zoom.
FINRA is again postponing the resumption of in-person arbitration and mediation proceedings as the COVID-19 pandemic intensifies in many areas around the country.
The regulatory agency announced on Jan. 5 that in-person hearings are postponed through April 2. This means any proceedings in that time period will not move forward unless both parties agree to using telephone or Zoom, or if the FINRA panel orders that a hearing can proceed remotely. Last month, the agency postponed hearings through the end of February.