An Ameriprise spokesperson instructed ThinkAdvisor by e mail Monday that “LPL and its recruits constantly and repeatedly violate the protocol for dealer recruiting in addition to trade requirements and rules.”
The spokesperson cited a “widespread sample the place LPL permits, encourages and misleads its advisors” to violate the dealer recruiting protocol and different trade requirements.
“LPL’s conduct is unacceptable and abandons all affordable notions of shopper privateness rights,” subjecting advisor recruits to regulatory and, in some circumstances, prison publicity, the spokesperson added.
In the meantime, Ameriprise was allowed to maneuver forward Monday with a short-term restraining order towards former advisor Douglas Kenoyer and his new agency, LPL, to stop them from soliciting Ameriprise shoppers and misappropriating confidential info.
The TRO was issued in america District Court docket for the Western District of Washington by Senior Choose Barbara J. Rothstein.
The TRO follows Ameriprise’s grievance alleging that Kenoyer, who resigned from Ameriprise in September 2024 after almost 20 years of affiliation, improperly solicited shoppers and took proprietary info in violation of restrictive covenants.
“In his position with Ameriprise, Kenoyer had acquired a major shopper base via an inner switch from former Ameriprise franchise proprietor Jan Gerards,” the attorneys Michael Taaffe, Brandon Taaffe and James Fanto mentioned in a press release.
“This switch included over 1,000 shoppers and greater than $134 million in property, ruled by an settlement prohibiting Kenoyer from divulging or utilizing any confidential shopper info,” the attorneys mentioned.
The court docket’s ruling “underscores Ameriprise’s declare that Kenoyer violated each his Franchise Settlement and the Dealer Protocol by soliciting shoppers earlier than formally becoming a member of LPL,” the attorneys mentioned in a press release.
“Each Ameriprise and LPL take part within the Dealer Protocol, which permits monetary advisors to take sure shopper info underneath particular situations when transitioning between corporations,” they continued.
“Nonetheless,” the attorneys mentioned, “Ameriprise contended that the protocol doesn’t cowl shoppers Kenoyer acquired via the inner switch from Gerards, nor does it allow pre-termination shopper solicitation.”
— Melanie Waddell contributed to this story.