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ARTICLE · 31 MAY 2018

Moving A Book Of Business - Potential Pitfalls

Crawley MacKewn Brush LLP
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Many financial advisors will change firms and have the experience of moving their book of business. There are many potential pitfalls that can occur in moving a book of business...

CanadaLitigation, Mediation & Arbitration
Bruce O’Toole
Bruce O’Toole
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Many financial advisors will change firms and have the experience of moving their book of business. There are many potential pitfalls that can occur in moving a book of business – both from a regulatory prospective and from a civil litigation prospective.

From a regulatory prospective, when an advisor resigns, their registration is automatically suspended by the applicable regulator. The advisor requires a new firm to sponsor their registration before they can provide investment advice or investment related services. It is this transfer that can cause problems for an advisor in some cases. Typically, the advisor's registration will be automatically approved and the process will seamless. However, in certain situations1, such as when the advisor is under investigation by the firm from which he or she is departing, the registration can be delayed for weeks, or even months.

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