What is the broker protocol?

Definition: The formal name is “Protocol For Broker Recruiting.” Informally also referred to as the “Protocol.” This is a intra-industry agreement between participating firms that governs the use of client information when a financial advisor leaves a firm to transition their practice to another firm.

When used in an RIA context: “The financial advisor transitioned their practice to the new RIA utilizing the broker protocol.”

See also: Episode 56