PART THREE<\/p>\n
Confidential or Proprietary Information Provisions<\/p>\n
Brokerage and advisory firms obtain and develop a large quantity of private and confidential information regarding their clients, products, compliance practices, and business methods. There is a great deal of regulation regarding the protection of client information, and firms have an interest in safeguarding certain information. To further that interest, they require their representatives to sign one or more documents acknowledging the confidentiality of certain information, and agreeing that the information is the property of the firm.<\/p>\n
While the firm may be concerned about its responsibilities under Regulation S-P or the Gramm-Leach-Bliley Act, regulatory issues are not the firm\u2019s only concern. A major motivation behind such clauses is to prevent a departing representative from taking information that may help them identify clients and the status of their accounts, their immediate investment needs, etc. when the representative leaves. Thus, the inclusion of such provisions (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" PART THREE Confidential or Proprietary Information Provisions Brokerage and advisory firms obtain and develop a large quantity of private and confidential information regarding their clients, products, compliance practices, and business methods. There is a great deal of regulation regarding the…<\/span><\/p>\n