UBS reaches settlement with ex-brokers in dispute over firm transition

On Behalf of | Jan 5, 2023 | Firm Transition

A settlement has been reached in a dispute between UBS Wealth Management USA and a group of brokers who left for another firm in October, AdvisorHub reports.

A court document stated that a consent agreement was filed by UBS and the Indianapolis-based team that joined RBC Wealth Management-U.S. Under the terms of the agreement, the 16 ex-brokers will be restrained from soliciting some of the clients they had worked with at UBS.

The dispute began when UBS filed a complaint in federal court accusing the team of violating their non-solicitation agreements when they jumped to RBC. The firm asked for a temporary restraining order barring the group from soliciting their former clients.

The brokers said they had made a “simple announcement” to their clients about their transition to RBC by using publicly available contact information. UBS responded by saying the non-solicitation agreements barred any communications, whether through an announcement or a solicitation, that was intended to get clients to join the brokers at their new firm.

But while the legal battle has been settled, UBS will continue to pursue its claims in arbitration before a Financial Industry Regulatory Authority panel. Before filing its court complaint, the firm had filed a claim with FINRA asking for a permanent injunction and monetary damages.

According to the AdvisorHub report, the team that left for RBC generated $8 million in annual revenue from $1.5 million in client assets when they were with UBS.

If you are looking to move from one firm to another, planning to go open up or join an RIA, looking to sell your firm or grow through acquisition or bringing on new advisors, the attorneys at Lewitas Hyman have the experience to guide you through the process to protect your interests. Regardless of whether the transition involves protocol or non-protocol firms, we will properly advise you so that you can focus on your transition and we will work to limit the risks you face during this transitional period. For more information, contact Lewitas Hyman at (844) 651-2641 or through our online contact form for a free consultation.

Share This