Melissa Goodman in the Financial Advisor IQ: If You Must Fire an Advisor, Do It Right


No one relishes having to fire a subordinate. And in the financial-advice business — by nature a “people” profession — the task comes with particular challenges. A manager who has to let an advisor go must think about the consequences for clients, team members and the whole chemistry of the practice, not just the person receiving the bad news...

Managers firing an advisor for cause can address legal risk by getting the firm’s attorney involved if the employee has recently complained about compliance, harassment or discrimination, says Melissa Goodman, a partner with law firm Haynes and Boone, LLP in Dallas whose clients include Bank of America and Morgan Stanley. A script is helpful for keeping the meeting short and civil. “Don’t debate the issue,” Goodman advises. The manager should convey that the decision has been made, not that “you might change your mind,” she says.

Excerpted from the Financial Advisor IQ, January 7, 2014. To view full article, click here (subscription required).


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