The issue goes beyond whether or not you feel they changed the game mid
stream.  Wirehouses, and banks for that matter, change their comp
pretty much annually.  This is nothing new.  In almost 20
years I have yet to see a change so drastic in 1 year time period that
is would so negatively effect a rep they could not survive.  There
have been a few cases where a rep had an poor book structure (say 90%
in UIT’s) and the firm stops the UIT business (that happened at ML a
few years back).  Generally speaking a well rounded business can
handle these changes because they usually take it from one area but
give it to another area (say big bonuses on new large accounts, along
with a reduced pay-out on smaller accounts~again a ML example). 
Such changes are usually in line with real growth of the advisors
practice and serves the firms bottom line the best (look at MER stock
over the las 5 years).



Not a personal shot at Dividend or anyone else, but we are adults and
to we must go in and exit with dignity and honesty.  A "tactic"
involving bankrupt attorneys and offering $.50 on the dollar may
work…but that does not make them right.   In the whole
grand scheme of things good things happen to people that walk the right
way and deep down we all know what that is. And the size and assets of
the firm that loaned you this money means nothing in that context.

[quote=rightway]Not a personal shot at Dividend or anyone else, but we are adults and
to we must go in and exit with dignity and honesty.

[/quote]

None taken. 

[quote=mktsystms] On a U4, you have to declare any and all settlements that have been made with creditors in the last 10 years.  Did your situation end up on your U4, and if it didn’t, then why didn’t it?  It seems to me that you ended up with two settlements.
[/quote]

Firms are looking at 3 items: quality of your business, whether you have any customer complaints and your credit report (liens, judgements and bankruptcies). If those items are clean, then you’ll have no trouble getting an offer.

[quote=rightway] A "tactic"
involving bankrupt attorneys and offering $.50 on the dollar may
work…but that does not make them right.

[/quote]

And it doesn’t make them wrong either. When Apple Computer settled with the Beatles record label, did it make Apple a “bad” company?  When Research in Motion settled with NTP, did it make them irresponsible businessmen?  Settlements and negotiations are a normal and acceptable practice in business, politics and law.

NASD arbitrations are a rigged playing field.  In order to level the playing field, you need to find the best representation you can. It affords you the necessary leverage to reach a compromise that makes both sides equally uncomfortable.

[quote=skeedaddy2]

[quote=mktsystms] On a U4, you have to declare any and all settlements that have been made with creditors in the last 10 years.  Did your situation end up on your U4, and if it didn’t, then why didn’t it?  It seems to me that you ended up with two settlements.
[/quote]

Firms are looking at 3 items: quality of your business, whether you have any customer complaints and your credit report (liens, judgements and bankruptcies). If those items are clean, then you’ll have no trouble getting an offer.
[/quote]

On the U4, item number 14k, subsection (1) states:  "Within the last 10 years, have you made a compromise with creditors, filed a bankruptcy petition, or been subject of an involuntary bankruptcy petition."

It’s a yes-no answer.  It doesn’t differentiate between a bankruptcy or a settlement with creditors.  It remains on your record for 10 years.  Furthermore, it’s a public record.  Anyone can go to the NASD website and see it.  It’s definitely not a good impression to make with clients (potential or actual,)  and you’re stuck with that public record for 10 years.

I’ve heard the same thing about your tax return being on the public record and available to view. I guess you need to know exactly where to look though.  Can you share a link where you can see a broker’s U-4 on the NASD website?  I went earlier today and only found Broker Check where you can see a history of employment and a whether or not you’ve been the subject of a disclosure event:

Types of Disclosure information include, but are not limited to:

This discussion reminds me of an incident my neighbor had last year.  He’s a very stable guy, married for 12 years and has had two jobs in the last 18 years; one for 10 and one for 8.

He accidentally cut off a driver as he was pulling into his driveway and the other driver drove onto my friends driveway and got out of his car. My neighbor is a baseball fanatic and his son plays on two leagues.  Feeling threatened, he pulled out a baseball bat from his backseat and rushed the other guy.  The other guy got back into his car and called 911. 

The police came and filed a report and a trial was set.  The judge let him off if he completed some community service hours and attended anger management classes.

My question here is: If my friend decides to pursue a career as a broker, do you think he should disclose that he was involved in a criminal event?  If yes, than you think this incident proves that he is  unqualified to perform well as a broker? Do you think the branch manager would be concerned that my friend would put a baseball bat to his head someday?

Bill, as always, thanks for your expert opinion. However, putting quotations around the word friend wasn’t necessary. Hiding behind an “I have a friend” story on an anonymous board isn’t my style.

[quote=rrbdlawyer]Let’s not lose sight of how stupidly violent our world has become.[/quote]

I agree. Did you see the violence surrounding the release of the Sony PS3 today?  It’s nice to see us Americans focusing on the important stuff. Right?