Ask Brad: What if My Broker-Dealer Terminates Me?

This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

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When weighing the decision to move to the RIA model, advisors must consider the catastrophic consequences to them if they are terminated by their broker-dealer.

There is a tabloid feel to articles that highlight the salacious reasons a broker was fired by their firm.

Many of those terminations are universally accepted as a reasonable outcome, removing a “bad apple” from the profession – a broker whose professional or personal actions were so appalling as to garner no sympathy from their peers.

But what about the brokers terminated for less than black-and-white reasons?