Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Flat markets coupled with weak revenue reports has led to an increase in the number of cases where credit unions and broker-dealers are on the receiving end of questioning who really owns an adviser’s book of business.Dennis Egan and James Giszczak, attorneys with Butzel Long in Ann Arbor, Mich., spoke on risk management issues on the topic at NACUSO’s recent annual conference. When an investment representative leaves a credit union’s program with little to no advance notice, having a previously deployed account retention strategy in place can save a lot of grief, they said.“Credit union reps surprisingly have large books of business,” Egan said. “The overhead is provided by the credit union. It’s usually the credit union that is losing the person, not gaining.”Giszczak said the time to start having discussions about what happens to the book of business should a rep leave is before bringing them on board. That includes identifying those assets that should be protected, have an enforceable agreement and should a rep indeed leave, doing quick analysis to determine whether there’s been any theft or breach of contract.“One of the things companies have to be aware of is taking extra precautions to make sure member information is not breached,” Giszczak emphasized.Technical industries are more likely to be ahead of the curve when it comes to protecting data, Egan said. Credit unions and other financial institutions “don’t realize that their information can be just as valuable as paint [formula] or a micro chip.” This is critical for those reps that are jumping ship, which Giszczak and Egan acknowledged is happening more these days.–[email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Peter Westerman


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.