- On February 27, 2017
- Robert Baird ordered to pay $23 million to Wells Fargo in raiding arbitration decision. Wow!
- This decision is causing many firms to re-examine their recruiting pipelines and some pending team recruits will be looked at again to reduce raiding exposure.
- We are aware of some team deals that were withdrawn after the release of the Baird raiding story.
- A raiding claim is typically made when a firm loses 30% to 40% of the branch revenue at one time, or over a short period of time.
- Protocol does not protect firms for raiding. Unfortunately, the rules around raiding are not well defined.
- Raiding is not covered by Protocol so regardless if a firm is a member of Protocol they can be subjected to the initial firm bringing “raiding” action against the new firm.
- Most broker raiding cases are handled through FINRA arbitration.
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