Changing firms

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Sparky's picture
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Joined: 2011-09-08

I will be starting with a new firm shortly and the start date is firm.  I know I'll be filling out my U-4 with the new company on the first day.  The problem is that my current company will owe me some sizable commissions on life/annuity business and I believe I need to be "employed" at the time the policies get issued/paid.  My guess is that they will cross by 2-3 days at most.  The new job only handles investments and I will not be doing ANY insurance work.  Also, the existing company lets you go the day you give them a 2-week notice.A few questions: 

  • Am I legally responsible for resigning from the old firm prior to starting with the new firm?  I won't be conducting any business during this 2-3 day overlap.  
  • How soon after I sign the U-4 with the new firm does the old firm get notice?
  • Does anyone have any other input/recommendations that I haven't addressed?

The commission is enough to make this gray area something I need to address, otherwise I would just walk.  Thanks in advance for your help!!

stockattorney's picture
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Joined: 2010-09-09

If you join your new firm and have not yet resigned from your old one then you may have given either firm cause to terminate you for maintaining associations with two separate BDs without expressed permission -- some states do not allow dual registrations.  Typically one would complete new hire forms but not have the new firm "drop" the U4 until you resigned from the old.  good luck

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