From the Desk ofJim EcclestonatEccleston Law LLC:
A Temporary Restraining Order (TRO) is an extreme remedy that financial services firms frequently employ to stop advisors from transitioning their clients to a new firm. While the TRO requires the parties in the case to maintain a certain status quo until the court can hear further evidence, the delay overwhelmingly harms the departing advisor. In many respects, the TRO fight is not the battle; instead, it is the very war itself.
Since leaving the Broker Protocol, Morgan Stanley, UBS Financial Services and other firms have filed TROs to prevent their former financial advisors from contacting, soliciting and doing business with their former clients.
Morgan Stanley and UBS left the Protocol for Broker Recruiting late last year, and since then have stepped up restrictions, and litigation, on financial advisors who may want to leave their firms and “solicit” clients to join them. According to Morgan Stanley and UBS, “solicit” means that the financial advisor will not initiate any communication of any kind to encourage a client to transfer their accounts to the financial advisor’s new employer. Morgan Stanley, for instance, has filed at least four temporary restraining orders in federal courts against their former financial advisors and has been successful in those actions. Significantly, one former Morgan Stanley advisor even lost his new job at an RIA after the wirehouse filed a TRO against him immediately after leaving the firm. Also in the news is JP Morgan Securities, because it has been very litigious, as well as Edward Jones.
These cases and many others underscore the need for financial advisors to retain competent securities counsel to extensively plan their transition. While no transition is stress-free, it is crucial for financial advisors to be prepared to win the TRO fight. The attorneys at Eccleston Law assist advisors in planning their transition, negotiating their transition and employment agreements, and defending them when their former firms file litigation and arbitration.
The attorneys ofEccleston Law LLCrepresentinvestorsandadvisorsnationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors includingSecurities Fraud,Compliance Protection,Breach of Fiduciary Duty,FINRA Matters, and much more. Ourattorneysdraw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services,contactus to schedule a one-on-one consultation today.
Related Attorneys: James J. Eccleston
Tags: james eccleston, eccleston law, eccleston law llc, eccleston, restraining order, tro, morgan stanley, ubs
FAQs
The short answer is yes. Restraining orders in California do go on your record. However, the extent to which a restraining order affects your record depends on several factors, including the type of restraining order, the specifics of the case, and whether you violate the order.
How long does a restraining order stay on your record in California? ›
Restraining orders issued with the help of a Los Angeles domestic violence attorney last for a maximum of five years, so an expired order will most likely not appear on a background check.
What is a TRO in a bank account? ›
A Temporary Restraining Order (TRO) is an extreme remedy that financial services firms frequently employ to stop advisors from transitioning their clients to a new firm.
What does TRO mean in legal terms? ›
Temporary restraining orders (TROs) are a type of short-term injunction issued to prevent a party from taking a certain action until the court is able to issue a more enduring order, such as a preliminary injunction.
How does a restraining order affect your life in California? ›
For the person to be restrained, having a restraining order against him or her can have very serious consequences: He or she will not be able to go to certain places or to do certain things. He or she might have to move out of his or her home. It may affect his or her ability to see his or her children.
Can you lose your job if you have a restraining order in California? ›
Your potential new employer may discover your restraining order during a background check. There are certain reasons a restraining order may affect your current job. If you are required to use a firearm during your employment, you might have to change duties or seek another job.
What is the legal standard for a temporary restraining order in California? ›
A temporary restraining order may be issued with or without notice, based on a declaration that, to the satisfaction of the court, shows reasonable proof of harassment of the petitioner by the respondent, and that great or irreparable harm would result to the petitioner.
What is considered a violation of a restraining order California? ›
Violating a protective order is seen as contempt of court. If injuries result from the act of violating the court order, you can be prosecuted under Penal Code 273.6. The violation may result in criminal charges or a criminal conviction and a mark on your record.
What are the elements for a temporary restraining order in California? ›
You will need to research and write (1) an “Application for TRO,” stating what you are requesting and when the hearing will be; (2) a “Memorandum of Points and Authorities,” explaining the relevant laws and how they apply to your facts; (3) a “Declaration” under penalty of perjury explaining of the facts of the case, ...
What are examples of TRO? ›
A TRO may be used, for example, to protect a wildlife preserve from getting bulldozed to construct a theme park. The preliminary injunction comes after the dust of the TRO has settled and the parties have a chance to hash out before the court the circ*mstances that lead them to this particular point.
A trust receipt is a financial document attended to by a bank and a business that has received delivery of goods but cannot pay for the purchase until after the inventory is sold.
Why is there a legal hold on my bank account? ›
Banks may freeze bank accounts if they suspect illegal activity such as money laundering, terrorist financing, or writing bad checks. Creditors can seek judgment against you, which can lead a bank to freeze your account. The government can request an account freeze for any unpaid taxes or student loans.
How do I terminate a temporary restraining order in California? ›
) you have to file a request in court before date that the Restraining Order expires. You can do this if you are the person protected by the order or the person restrained by the order. If the other side has filed a request to change or end the restraining order, click for instructions on how to respond.
Is there a hearing required for a temporary restraining order in California? ›
After you've filed the forms, continue with California's restraining order process. You will need to distribute the filed forms, serve the restrained person, and attend a court hearing.
How do you legally tell someone to stop contacting you? ›
A restraining order (protection or no-contact order) is an enforceable legal document that stops a harasser from repeating problematic behavior. A court grants this order, and the police enforce it. You will need to serve notice to the harasser. How you may serve that notice to the harasser will vary by state.
Is a restraining order a criminal record in California? ›
A: Protection orders are part of a civil court, meaning they themselves won't be on your criminal record.
Is a restraining order a misdemeanor in California? ›
Penalties for Penal Code 273.6 Violating a Restraining Order
A PC 273.6 violating a restraining or protective order is normally a misdemeanor offense, but could be charged as a felony crime depending on the circ*mstances and defendant's prior record.
How to check if someone has a restraining order in California? ›
Courts keep case records in either physical paper or electronic format. There are three primary ways to find restraining orders: Go to the courthouse and request to look at the paper records. Go to the courthouse and request to look at the electronic records.
How does a restraining order work in California? ›
A judge can grant a restraining order to protect someone, their family members and their pets. Once a judge grants a restraining order, the police can be called to enforce it. A civil harassment restraining order can include these types of orders: No contact.
