Beware of the impact of acquisitions
As seen with the fallout from Towry’s acquisition of Edward Jones, an acquisition can trigger disputes over contracts and client ownership.
You need to make it clear what is expected of advisers with regard to client ownership, and the consequences and possible penalties for failing to meet the agreed terms of the contract.
If you acquire a firm and retain its principal, they should be fully bound in the same way as other advisers and the financial penalties should be spelt out clearly.
Where one firm has acquired another, make sure the terms of adviser contracts are consistent and do not clash or contradict each other. For this reason, if it is legally achievable, having a standard adviser contract across all companies in a group is desirable.