When an individual adviser is preparing to launch their own Registered Investment Adviser (RIA) firm or join an existing one while currently employed at a brokerage firm, it’s essential to consider whether the Protocol for Broker Recruiting — commonly referred to as the Broker Protocol — applies to their situation.
Origins of The Broker Protocol
The Broker Protocol has become a widely recognized part of the conversation around “breakaway advisers” — advisers leaving traditional wirehouses to establish or join independent RIA firms. Originally established in 2004 by Smith Barney, Merrill Lynch, and UBS, the protocol was designed to minimize litigation over client solicitation and data sharing as financial advisers transitioned between competing firms. The protocol created a structured and predictable way for advisers to handle client information when moving from one signatory firm to another.
In the years since, the Broker Protocol has expanded well beyond its original wirehouse participants. While the protocol once represented a relatively small club of large brokerage firms, today there are thousands of firms listed as active members. The member list includes a wide range of firms — from major national institutions to smaller independent RIAs — many of which are focused on recruiting breakaway advisers.
The Broker Protocol in 2025
That said, the Broker Protocol landscape has shifted in recent years. A growing number of firms have opted to exit the protocol, particularly in response to M&A, recruiting strategy changes, or concerns over adviser retention. For example, in 2024 alone, several notable firms — including Cresset and multiple Focus Financial Partners affiliates — publicly announced their withdrawals from the protocol.
Key Stats and Information:
- J.S. Held currently serves as the administrator of The Broker Protocol
- Over 2,500 firms are currently members
- The full list of member firms can be found here
How to Join the Broker Protocol
Per the J.S. Held site, “A firm interested in joining The Broker Protocol must complete and sign the Joinder Agreement and send it to J.S. Held. Please also submit the name, phone number, and email address of your firm’s contact, for purposes of The Protocol. This contact information will be available to all firms listed on The Protocol. Signed copies of the Joinder Agreement and firm contact information should be submitted to J.S. Held.”
The Joinder Agreement can be found here.
Fees and Expenses
One important feature of the Broker Protocol is that there’s no fee to join — no upfront cost or annual dues. Many new RIAs choose to join when they begin hiring advisers, but it’s important to understand that joining the protocol also commits the firm to follow the same rules when its own advisers leave to join another protocol member.
The Role of the Broker Protocol
It’s also worth noting that while the protocol can help reduce legal disputes, it does not prevent firms from pursuing claims of “raiding” — the practice of hiring multiple advisers from a competitor in a short time frame.
For advisers transitioning between firms, the Broker Protocol is generally only enforceable if both the departing and receiving firms are members. When both firms are members, the protocol clearly defines the limited client information an adviser is permitted to take when resigning:
- Client Name
- Address
- Phone Number
- Email Address
- Account Title
The protocol strictly prohibits the removal of any other client data, including account numbers or sensitive financial records. There is also a formal process for submitting this information, which must accompany the adviser’s resignation letter to their branch manager.
To help ensure compliance with SEC Regulation S-P and other applicable regulations, the protocol notes that the new firm that the adviser has joined agrees to limit to use of the above client information solely to the new joining advisor’s solicitation of his or her former clients at the previous firm. A former client will be asked to sign a standardized form authorizing the release of previous account numbers and other account information before the previous firm releases such information to the new firm.
Any RIA firm looking to make use of the broker protocol is strongly encouraged to review the protocol’s exact language in detail and to seek the proper legal counsel. There are a number of additional scenarios that the broker protocol addresses and it’s very important that a firm considering whether to join the broker protocol fully understand the ramifications of the decision and whether the protocol is applicable to a given firm. Any firm that joins the broker protocol is agreeing to be governed by and to follow the exact guidelines of the protocol.
Have specific questions? Our team of registration experts is here to help. Let’s talk about how we can help you break away and start your own RIA.