JPMorgan accused of gaming broker poaching system

JPMorgan is of two minds about poaching brokers: It can hire whomever it wants from competitors, but many of its own brokers are off-limits.

Bloomberg News reports that it’s a position that is testing the boundaries of the so-called Protocol for Broker Recruiting, a decade-old agreement among hundreds of brokerages that’s meant to minimize litigation when advisers defect.

JPMorgan and a dozen or so other members of the pact are increasingly claiming exceptions to its rules, and they’ve filed suit to stop some brokers from leaving and taking clients with them.

JPMorgan’s effort to benefit from the agreement while also declaring some of its own employees untouchable is raising hackles inside the industry. It’s also prompting some insiders to suggest that the rules should be rewritten.

JPMorgan’s critics say the bank is gaming the system, and at least a few judges have shown sympathy for that view.

To access the complete Bloomberg News article hit the link below:

JPMorgan Accused of Double Standard on Broker Poaching

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