Comments on: Partnership Warning: Do You Know What You’re Getting Into? http://thefasttrackblog.com/2007/06/12/partnership-warning-do-you-know-what-youre-getting-into/ Angie Herbers’s latest Investment Advisor articles Sun, 21 Feb 2010 03:32:21 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: John Gjertsen http://thefasttrackblog.com/2007/06/12/partnership-warning-do-you-know-what-youre-getting-into/comment-page-1/#comment-39 John Gjertsen Sat, 28 Jul 2007 01:13:39 +0000 ia-wordup-7836#comment-39 Trying to understand the sentence: "For example, with the current shortage in supply, it’s not as hard to find a job, and most people want to work for independent advisors." Yes, I too wish to enter this career space on the RIA side rather than the sales side, and I did just finish my CFP program and took the exam in July, finishing at the top of my class. I don't see where the opportunities are advertised for independent RIAs who are trying to grow their practice and mentor a new generation of planners. Not monster.com, not careerbuilder.com, not napfa.org... I attend and try to network at my local FPA but nothing has yet materialized. Any advice? Trying to understand the sentence: “For example, with the current shortage in supply, it’s not as hard to find a job, and most people want to work for independent advisors.”

Yes, I too wish to enter this career space on the RIA side rather than the sales side, and I did just finish my CFP program and took the exam in July, finishing at the top of my class.

I don’t see where the opportunities are advertised for independent RIAs who are trying to grow their practice and mentor a new generation of planners. Not monster.com, not careerbuilder.com, not napfa.org… I attend and try to network at my local FPA but nothing has yet materialized. Any advice?

]]> By: Bryan Hill http://thefasttrackblog.com/2007/06/12/partnership-warning-do-you-know-what-youre-getting-into/comment-page-1/#comment-38 Bryan Hill Sun, 24 Jun 2007 13:06:39 +0000 ia-wordup-7836#comment-38 I agree that a partnership offer by a registered investment advisor firm shouldn't be accepted without the new partner’s attorney reviewing the offer before its acceptance. It's at the offer stage that a new partner might have the most leverage. Unfortunately, many new partners do not understand the long term implications of certain restrictive covenants associated with the partnership agreement. Is there a non-solicit, non-compete and/or confidentiality restriction imposed by the partnership agreement (or ancillary documents) for activities following the partner's subsequent departure from the partnership? If structured correctly by the partnership, these restrictive covenants are legally enforceable and can tie up a partner's future options. Does the partnership agreement require a departing partner to give notice for a specified period before resignation? This type of notice of resignation provision tied with the duty of loyalty provision are used by partnerships to prevent a partner from immediately resigning or giving notice of resignation and soliciting clients during the interim period. After providing the departing partner gives notice, the remaining partners often use this interim period to recruit/retain the departing partner's clients while the departing partner has to stand on the side lines and cannot communicate with his clients. Bryan Hill, Esq. Omaha, NE (This is not legal advice. A reader should contact his or her attorney to discuss his or her particular situation and the applicable local laws.) I agree that a partnership offer by a registered investment advisor firm shouldn’t be accepted without the new partner’s attorney reviewing the offer before its acceptance. It’s at the offer stage that a new partner might have the most leverage. Unfortunately, many new partners do not understand the long term implications of certain restrictive covenants associated with the partnership agreement.

Is there a non-solicit, non-compete and/or confidentiality restriction imposed by the partnership agreement (or ancillary documents) for activities following the partner’s subsequent departure from the partnership? If structured correctly by the partnership, these restrictive covenants are legally enforceable and can tie up a partner’s future options.

Does the partnership agreement require a departing partner to give notice for a specified period before resignation? This type of notice of resignation provision tied with the duty of loyalty provision are used by partnerships to prevent a partner from immediately resigning or giving notice of resignation and soliciting clients during the interim period. After providing the departing partner gives notice, the remaining partners often use this interim period to recruit/retain the departing partner’s clients while the departing partner has to stand on the side lines and cannot communicate with his clients.

Bryan Hill, Esq.
Omaha, NE

(This is not legal advice. A reader should contact his or her attorney to discuss his or her particular situation and the applicable local laws.)

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