Neil Weinberg September 16, 2015 — 5:00 AM EDT
The weekend client raid is an open secret. A financial adviser quits late on a Friday and spends the next couple of days helping his new employer solicit his old customers. There’s even a broker pact that suggests it is all a refined gentleman’s game.
Until things fall apart.
A new arbitration case alleges that Oppenheimer & Co. stepped well beyond the bounds of propriety in mounting a client raid over a three-day weekend earlier this summer. Such incursions are common, according to people in the industry. What’s unusual is for details of these raids to become public, in part thanks to an industry pact that governs broker job-hopping in an effort to tamp down litigation. The Oppenheimer matter -- told through arbitration and court filings, letters and e-mails -- provides a vivid study of some of the new strains to the old ground rules of client raiding.
To read the full story: The Weekend Client Raid That Blew Up: How a Brokerage Battle Went Public