Last week Edward Jones won a restraining order against an advisor who left the firm with around 11 accounts and $15 million in assets. It's not the first time the firm has used the courts to chase down breakaways the firm feels they have cause to pursue. And they're not the only one to use the courts in this way. From Morgan Stanley to JPMorgan and Charles Schwab, every firm uses litigation to protect themselves from breakaways they think have violated their agreement. Many argue EJ is perfectly within its rights to defend against outflows of clients, assets and reps. But some commenters — including EJ breakaways themselves — brand such litigation as "hypocritical" and "petty." Is Edward Jones being petty litigating advisors who jump ship?
Is Edward Jones Being 'Petty' Chasing Breakaways With Lawsuits?
Yes. If people want to go, let them go. Unless you have reason to believe they've violated their agreement, there's no need to pursue them when they leave.
No. Any firm — including Edward Jones — has the right to protect their business, including by litigation.