Laurence Landsman was recently featured in the Fall 2024 edition of NAPAnet, The Official Magazine of the National Association of Plan Advisors. In the article, Landsman weighed in on the impact of non-compete agreements and the role of The Protocol for Broker Recruiting in reducing litigation related to financial advisors transitioning between firms.
Landsman noted that before the introduction of The Broker Protocol in 2004, there was significant litigation over registered representatives switching firms. The protocol, signed by over 2,000 firms, allows registered representatives to take specific client information when moving between firms as long as they adhere to its rules. While not perfect, Landsman acknowledged that “the protocol has significantly reduced the amount of non-compete litigation.”
Landsman also commented on the current legal uncertainties surrounding non-competes. The Federal Trade Commission (FTC) introduced a nationwide ban on non-competes in April, but a court-issued injunction delayed enforcement. If the FTC ban is upheld, Landsman suggested it could make it easier for financial advisors not covered by the Broker Protocol to move between firms.
Landsman concluded, “It seems like the balance tilted too much toward employers’ concerns, and some rebalancing would be appropriate.”
This evolving legal landscape continues to shape how financial advisors navigate their careers, especially in light of growing tensions between employers’ desire to protect confidential information and advisors’ ability to change firms.
To read the full article, click here.
For more information on non-compete agreements and their impact on financial advisors, contact Landsman Saldinger Carroll.
