The Diamond Podcast for Financial Advisors

How to Avoid the Dreaded TRO: Legal Strategies for Advisors in Transition

Oct 30, 2025

Jarrod Malone and Michael Bressan, partners at Shumaker, are experts in advisor transitions and legal disputes. They discuss the rising trend of Temporary Restraining Orders (TROs) against departing advisors, highlighting the importance of legal guidance in minimizing risks. They explain how wirehouses like Merrill identify targets for TROs and share best practices to protect against litigation. Notable cases and common advisor mistakes are also explored, underscoring the significance of careful planning and compliance during transitions.

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INSIGHT

TROs Are Back And Risky

TROs from wirehouses like Merrill and UBS have resurged and create reputational and financial risk for departing advisors.
Advisors who plan carefully and follow rules often render these actions more show than substance.

INSIGHT

Why Firms Use TROs Now

Firms' use of TROs is cyclical and often driven by concerns over client data and rising transitions to independence.
TROs also serve as a tool to stem advisor departures but primary driver remains client information control.

ADVICE

Use Protocol Moves When Possible

Protocol moves significantly reduce litigation risk compared with non-protocol departures, so prefer protocol when available.
If you must leave non-protocol, be methodical and document compliance with FINRA and firm rules.

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With Jarrod Malone & Michael Bressan, Partners at Shumaker

Overview

As TROs and lawsuits make headlines, two top attorneys who represented Merrill breakaways OpenArc, share how advisors can minimize risk, protect client relationships, and make a clean move with confidence.

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NOTE: The views and opinions expressed by the guests on this podcast are their own and do not necessarily reflect the views and opinions of Diamond Consultants. Neither Diamond Consultants nor the guests on this podcast are compensated in any way for their participation.

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.

Related Resources

Top Tips for Setting Your Business Up for Success Years Before a Move
Even if a move is years away—or just a possibility—it’s never too soon to start preparing. In this guide, we’ve gathered the most impactful tips from 20+ years of working with advisors navigating transitions. Whether you’re just exploring what’s out there or actively conducting due diligence, these insights will help you position your business and team for success, whenever the time is right.

The Missing Narrative of the $129B Merrill Breakaway Story
The largest (and quite possibly most significant) advisor breakaway in industry history made news this week. Yet instead of leading with the scale or significance of the move, headlines centered on Merrill’s lawsuit alleging corporate raiding.

The $129B Blockbuster Move: Shirl Penney on Why This Transition Marks a New Era for the Industry
The $129B OpenArc breakaway marks a watershed moment for wealth management. In this Rapid Reaction episode, Louis Diamond and Shirl Penney unpack what it means for the RIA model, advisors, and the future of industry competition.

Michael D. Bressan
Partner

Michael is a member of a team of lawyers who represent large financial institutions and high-net-worth individuals regarding employment transitions and violations of contractual covenants. His practice primarily focuses on securities law, restrictive covenants, trade secrets, corporate change in control issues, mergers and acquisitions, commercial litigation, arbitration, and high-level negotiation.

Jarrod J. Malone
Partner

Jarrod focuses his litigation practice on representing financial and investment advisors transitioning from firm to firm and has advised on some of the largest transitions in the country. He has significant litigation experience in State and Federal Courts, FINRA arbitrations, and has been class counsel in numerous class actions. Jarrod is one of the few lawyers in the United States who have successfully brought Racketeer Influenced and Corrupt Organizations claims in federal court and has handled dozens of TRO cases, both prosecuting and defending, throughout the country. He has substantial knowledge in electronic discovery and has assisted numerous corporations in data breach incidents.