New York, NY securities attorney Jenice L. Malecki shares her advice for employees in the in the securities industry who have been terminated or are leaving a brokerage firm. She remarks that anyone considering a transition between broker-dealers, or facing termination, must act quickly and retain legal counsel immediately. Such transitions involve complex rules regarding client information, non-compete agreements, trade secrets, and compliance obligations. Brokers must carefully follow contracts and firm policies to avoid violations that could result in additional negative marks on their Form U5.

If termination is imminent, it is often preceded by an internal investigation. She stresses that retaining a lawyer at the outset of an investigation—before submitting any written statements to the firm—is essential, as the firm’s attorneys represent the firm, not the individual. Navigating this process without counsel leaves a broker effectively representing themselves in a highly regulated environment, which is extremely risky.

Legal guidance is equally critical for brokers planning to move their book of business to a new firm. Proper strategy ensures compliance with regulatory requirements while protecting professional reputation and client relationships.