The Protocol for Broker Recruiting, usually called the Broker Protocol, shapes how many advisors change firms. Here's a plain-language overview. It is not legal advice.
What it is
The Broker Protocol is a voluntary agreement among member firms, created in 2004. When an advisor moves between two member firms, it allows them to take limited client information and solicit those clients, provided they follow its rules, which generally reduces the risk of litigation over the move.
What information it covers
Under the Protocol, departing advisors may generally take only basic contact information for clients they serviced: client name, address, phone number, email address and account title. Account numbers and other detailed records are not included.
How the process generally works
- The advisor resigns in writing.
- At the same time, the advisor gives the branch manager a copy of the client information they are taking.
- Both the old and new firms must be Protocol members at the time of the move.
Important limits
- Not every firm is a member, and firms have joined and withdrawn over the years. Several large firms, including Morgan Stanley and UBS, withdrew in 2017.
- Your employment agreement, non-solicit terms, team agreements and any state laws still matter.
- Protocol status should be checked as of the date you move.
Always have an attorney who specializes in advisor transitions review your situation before you resign. We can help you think through timing and firm options in the meantime.