Protocolopoly: How to Get Out of Transitional "Jail"

Morgan Stanley and UBS have withdrawn as members of the Protocol for Broker Recruiting (“Protocol”), leaving over 20,000 financial advisors confused and concerned; talking heads are providing a lot of talk, but scant substantive guidance; and temporary restraints are being pursued and granted. What should a financial advisor do on his turn when departing? Successfully transitioning one’s book of business should not be dependent upon the luck of the roll of the dice.

For the uninformed, however, welcome to Protocolopoly, the fictitious brand new financial services industry version of the classic board game Monopoly released just in time for the holiday season.  

In Protocolopoly, Protocol membership represents the metaphorical “Get Out of Jail Free” card. However, the twist is now that Morgan Stanley and UBS have withdrawn from the Protocol, and such card no longer exists for their departing financial advisors. Should such a financial advisor still depart and take a chance? Let’s look at the impact.

In Protocolopoly, winners successfully transition their book of business from a non-Protocol firm. Whether your book is worth a hotel on Boardwalk or Baltic, the transitional rules are still the same. 

Go to Jail:

You can still go to jail in three ways: (1) land directly on “Go to Jail”; (2) throwing three consecutive doubles in one turn; and (3) drawing a “Go to Jail” card from the Community Chest. Going to jail is not perpetual and thus does not cause you to lose the game or your securities industry license. 

As you already know, the consequences of going to jail in Monopoly can be significant. Primarily, being incarcerated results in lost opportunity costs. For example, while in jail the player is precluded from circling the board, purchasing additional properties, potentially landing on Free Parking and/or passing GO and collecting $200. 

In Protocolopoly, the practical consequences of going to jail can be existential. While in jail, a financial advisor can lose her client relationships; perpetual future income flow; and perhaps even the bulk of her business. 

As in Monopoly, going to jail should not be confused with landing on the jail space, which in Protocolopoly represents a financial advisor who successfully transitioned her business and is Just Visiting.

To Get Out of Jail:

As set forth above, in Protocolopoly, a departing financial can only obtain a “Get Out of Jail Free” card through a third-party. Financial advisors departing from non-Protocol firms cannot take a Protocol list or solicit certain clients. Thus, there are only three available options to get out of jail: (1) roll doubles; (2) pay $50; or (3) buy a “Get Out of Jail Free” card from another player. 

Trying to “roll doubles” is extremely risky for the financial advisor.  It is the Protocolopoly equivalent of a court challenge. If you prevail (roll doubles), you leave jail without cost, other than legal fees incurred, and move on with your transition. However, if you are unsuccessful, you remain in jail and are substantially encumbered from transitioning clients. 

You can pay today’s equivalent of $50 (based on the 1935 original game). This is the Protocolopoly equivalent of settling with your prior employer.  This is expensive, but enables your release from jail although not a license to solicit your book. 

Lastly, you can buy a “Get Out of Jail Free” card from another player before even going to jail. This is the Protocolopoly equivalent of retaining an experienced attorney, such as the undersigned, who serves as the classic “shoe” token other player, who can protect your Achilles heel and assist you in your transition and avoid being impeded by going to jail; experiencing any delay in your transition; and going to court and/or entering a financial settlement with your former firm. This is, by far, the best option. 

A financial advisor must insure that the purchased “Get Out of Jail Free” card is authentic. Unfortunately, there are many counterfeit “Get Out of Jail Free” cards in the Community Chest. If a counterfeit “Get out of Jail Free” is purchased, the damage can be extensive because the player will have expended significant funds to acquire the card and will remain in jail in any event.

While Protcolopoly is a fictional game, moving one’s book from a Non-Protocol firm is a serious and existential business decision. If properly considered, planned and executed, the successful non-Protocol transition will lead to happy and prosperous holidays for many seasons to come.  

About the Author: David A. Gehn, Esq. is an attorney that has represented financial services industry participants for over 20 years and has served as counsel to financial advisors in connection with well over 100 successful pre-Protocol, Protocol, and non-Protocol transitions.      

Disclaimer: This article only reflects the personal opinion of its author. The opinions and views contained in this article shall in no way reflect the opinions and views of Ellenoff Grossman & Schole LLP or any other persons or entities. Nothing contained in this article shall be construed as legal advice and should not be relied on in any manner. This article may be considered ATTORNEY ADVERTISING.