Financial Advisor IQ: Kevin Galbraith Discusses Advisor Transitions Between RIAs

A new article in Financial Advisor IQ discusses important considerations for advisors to keep in mind as they consider moving from one Registered Investment Advisor (“RIA”) to another. The article’s author, Brianna Monsanto, quotes Kevin several times:

  • Regardless of what motivates their move, to avoid legal repercussions, advisors making the jump must be mindful of contractual obligations and regulatory obligations concerning the use of confidential information, said Kevin Galbraith, attorney at New York–based The Galbraith Law Firm.
  • “It’s really those two big categories of pitfalls,” said Galbraith. “Make sure you’re not breaching the contract you have with your former employer, and make sure you’re not breaching any confidentiality requirements as it relates to client information.”
  • Galbraith added that advisors should initiate conversations with the legal department at their new firms to discuss possible underlying restrictions such as any restrictive covenants.
  • “The earlier you have that transparent conversation with the legal department of your new employer, the much more likely it is that your situation is going to end up going smoothly.” Galbraith said.

Our firm has counseled many Financial Advisors and Investment Advisor Representatives as they have considered moving from either a broker-dealer to another, from a broker-dealer to an RIA or from one RIA to another. In every instances, the key to a successful and smooth transition has been—on the front end—a fulsome and candid assessment of the legal, strategic and professional factors at play. Once advisors reach out to us to engage in this analysis and discussion, we can help put them in a position to succeed professionally and to avoid any unwanted legal entanglements.

If you are a Financial Advisor or Investment Advisor Representative and are considering a transition from one employer to another, please contact a securities attorney at The Galbraith Law Firm by calling 212.203.1249 or emailing inquiry@galbraithlawfirm.com for a free confidential consultation.