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Forgivable Loans, Upfront Bonuses, and Transitions

What Are Some Common Issues That Arise When a Broker or Advisor Changes Firms?

The process when a broker or advisor changes firms can often times be messy and uncomfortable, and problems can arise with the firm you are leaving as well as the firm you are moving to. When moving away from a firm, problems usually surface around client retention, existing promissory notes or loans, outstanding compensation, and the language included on your Form U-5, to name a few. When moving to a new firm, issues involving employment contract negotiations, trade secrets and methodologies, and compensation can occur.

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How Will the Firm I Am Leaving Handle my Outstanding Loans and Promissory Notes?

When you leave a brokerage or advisory firm, the firm will assuredly seek repayment of any unpaid balances you have with the firm. These unpaid balances can include any loans the firm made to you during your employment and outstanding arbitration awards involving employment related issues. Consulting a skilled securities industry employment attorney, like those at Malecki Law, can help decide whether fighting back, paying the balances, or negotiating a settlement and/or payment plan with your firm is in your best interests.

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Should I Accept an Upfront Bonus From my new Firm?

While a sizeable bonus may be enticing when joining a new firm, you should be aware of certain caveats that are associated with upfront bonuses. Generally, an upfront bonus will compensate a broker or advisor for their work performance in the preceding year before joining the new firm. These bonuses, however, are usually structured as promissory notes, meaning there are certain conditions you must fulfill to prevent your firm from calling the note early, namely staying employed with the firm for a certain period of time and/or meeting sales goals. You should consider the characteristics of your new firm and your specific employment factors before accepting a new job because of an upfront bonus.

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What Should I Do if I Am Transitioning to a new Brokerage or Advisory Firm?

Considering the various issues that can arise when transitioning to a new firm, we highly recommend that you consult an attorney practicing securities employment law, like the ones at Malecki Law. Malecki Law can help you negotiate severance packages, establish payment plans for outstanding loans, and aid in any other issues that arise from your transition to a new firm.

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Testimonials From Former Clients
I highly recommend Jenice and her team at Malecki Law. I had a challenging, and lengthly case. Jenice was professional, very knowledgeable, and a pleasure to work with. She managed to make the process far less stressful during a very difficult time. They care about their clients, and it definitely shows. Mario
Jenice is truly a miracle worker and one of the top securities lawyers. She handled a very difficult case for us, displaying her legal knowledge, intelligence, and savviness throughout the process. I cannot recommend her enough. The quality of work from her team rivals that of corporate law firms. She was always available, extremely professional, and made sure to know all the details of the case. We were very fortunate to have been referred to Jenice and highly recommend her for any securities related legal issues. Nathan A.
An excellent professional who represented us in trial regarding a bank fraud, an unexpected and difficult time. A professional that worked hard, persevering and who stood toe to toe against firms that had a team of excellent lawyers backing them up. Her unflinching determination really stands out, it makes you feel you have someone who really cares about trying to recover what you lost from the people that wronged you. Salomon Levi
It is difficult to thank you in words when gratitude comes from the heart, so I will try to link feelings with writing. It is essential for us to mention your excellence as a professional, your aptitude on legal fields, and your unavoidable persistence. All of these virtues that elevate the profession you exercise in such an admirable way, go hand in hand with your sense of ethics, your human warmth and the transparency in your actions. To sum up, thank you for being a listening ear and for having the right word while transmitting information about the legal process. Having you as our representative during such an adverse situation was a privilege and enough reason for our eternal gratitude. Angeles Aparain
To say that my securities litigation was complex would be a severe understatement. With multiple parties involved and spanning many years, trying to understand the issues was daunting to say the least. Jenice and her team broke down the transactions by segment and by party uncovering every hidden expense. In the end, I was more than happy and could not thank Jenice and her team enough. I would not hesitate to recommend Jenice to anyone. She is highly professional, incredibly knowledgeable, well connected to industry experts, has a tireless work ethic and is so pleasant and easy to communicate with. Five stars for sure! Andrew Loughrane