Changes to an agreement among financial firms could have a big impact on your relationship with your financial advisor.
The agreement, known as the protocol for broker recruiting, is under siege. That means communication lapses when your advisor switches firms could become more common.
Established in 2004, the agreement is aimed at helping smooth a financial advisor's transition from one firm to another amid a fierce competition for talent. The protocol sets standards as to how much client information an advisor can take with them when they transition, with the idea that it paves the way for less litigation between firms.
But a couple of large Wall Street firms have recently pulled out of the agreement, creating new complications for advisors and their clients.