Common Mistakes That Trigger Legal Risk

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About this episode…

If you’ve been keeping up with recent industry headlines, you’ve likely noticed a concerning trend: a growing number of TROs (temporary restraining orders) being filed by wirehouses and large firms against advisors who leave.

Firms like Merrill and UBS are increasingly using TROs to restrict advisors from contacting clients or moving accounts immediately after resignation. For those caught in the crosshairs, the consequences can be serious: reputational damage, legal fees, and weeks of uncertainty at exactly the wrong time. Yet for those who are moving with guidance from attorneys experienced in advisor transitions, and are coloring within the lines, it can seem that these legal actions are more show than substance.

To help us unpack what’s happening and, more importantly, how to avoid becoming a headline yourself, Louis Diamond is joined by Jarrod Malone and Michael Bressan, two leading attorneys who represent financial advisors in transitions and disputes.

Their firm, Shumaker, has handled thousands of advisor-related cases—including defending the recent OpenArc transition from Merrill, which drew national attention when a judge quickly ruled in favor of the breakaway team.

Together, they explore:

• The recent uptick in TROs—and what’s driving the resurgence.
• The firms that have been the most aggressive—and who they are targeting.
• The biggest mistakes advisors can make in a transition—and how to limit your legal risk.
• Merrill’s lawsuit against recent breakaways OpenArc—and what key lessons other transitioning advisors can learn.
• The best practices advisors should implement before, during, and after a move—and why having the right legal plan in place can make all the difference.It’s an eye-opening conversation on the legal side of advisor transitions—and how to make your next move with clarity and confidence.

Want to learn more about where, why, and how advisors like you are moving? Click to contact us or call 908-879-1002.