Unlocking Clients

 

Topic: Unlocking Clients

 

Speaker: Scott Yonker, Cornell University

 

We investigate the impact of non-compete agreements (NCAs) on the market for financial advice using variation in firm-level adoption of the Broker Protocol, which partially relaxed enforcement of NCAs. We show that while overall adviser departures do not increase, the associated costs do, as advisers move strategically to firms to which they can legally transfer client assets. When NCAs are not enforced, client fees and advisers’ propensities to engage in misconduct increase, and firms appear less willing to fire advisers for misconduct. Our findings question whether the costs of “unlocking” clients from their advisory firms outweigh the benefits.

Time: 12.00 – 1.00 p.m.

Venue: University of Technology, Sydney

               Building 8, Room 8.002, Dr Chau Chak Wing Building
               Dr Chau Chak Wing Building

               14 - 28 Ultimo Road, Ultimo

 

 

Enquiries: Mala Kapahi (Ph: +61 2 9514 7777)