Monday, January 18, 2010

Nationwide Financial Tells Advisors To Find New BDs

Nationwide Financial has advised its independent financial advisers to find new broker-dealer relationships before April 30, according to Investment News.

The article states that the move is intended by Nationwide to focus its efforts on its proprietary sales force and to expand its insurance business.

Independent brokers have a number of choices for new affiliations, as there are any number of independent firms that are available, depending on the needs of the adviser and his clients. I would like to remind brokers that these agreements should be reviewed by an attorney prior to moving to a new firm, as there are a number of clauses which could cause difficulties down the road. While many brokers believe that employment agreements, promissory notes and related contracts are not negotiable, many are, depending on the circumstances. Additional consulting an attorney before entering into any type of agreement involving your career and clients is money well spent, if for no reason other than to prevent surprises down the road.

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