What this is (and isn’t)
A plain-English overview of what drives lawsuits in advisor transitions, what ‘protocol’ changes, and how to think in exposures instead of worst-case headlines.
Note: This is educational and not legal advice. Treat it as a primer so you can ask better questions of counsel.
Key takeaways
- Most disputes are about solicitation, data, and messaging—not the decision to resign itself.
- ‘Protocol’ can reduce risk, but it doesn’t erase contractual obligations or trade secret issues.
- Treat risk as exposures you can reduce (process, documentation, counsel), not a binary outcome.
- Your client communication plan is often the trigger point—script it and align with counsel.
- Keep your plan clean: no data mishandling, no premature outreach, no sloppy digital trails.
What typically triggers legal action
- Alleged solicitation before resignation
- Use or retention of client data
- Misleading client communications
- Recruiting colleagues or staff
Protocol vs non-protocol (in plain terms)
When applicable, protocol can define what limited client information may be taken and how a resignation is executed. It does not override non-solicit language or broader confidentiality duties.
How to lower your exposure
- Engage counsel early.
- Map your restrictions and supervision environment.
- Create a compliant client messaging plan.
- Document what you do and don’t touch.
- Choose a transition team that has seen your fact pattern.
Disclosure
RIA Confidential is an educational resource center. Nothing on this page is legal, tax, or compliance advice. Consult qualified legal and compliance professionals for guidance specific to your circumstances.
