2013-02-19 11:54:48 -

International  financial services organisation AES  International has written to
industry  trade associations and  several other international  firms calling for
the implementation of a 'broker protocol'.

Pioneered  by  firms  such  as  Merrill  Lynch,  similar protocols have had some
success  in America, aimed at  helping client privacy and  the freedom of choice
clients have in selecting their financial adviser during a move between firms.

AES  Chief Operations  Officer John  Viney explains  that the  exigencies of the
international  marketplace  make  it  very  hard  for  organisations  to enforce
restrictive  covenants and employment restrictions.  As  a consequence, AES is a
strong  advocate of   adopting  the American approach  of voluntarily adhering and
implementing  a more  realistic protocol  aimed at  protecting the  interests of
clients,  advisers and companies alike.   He stated, 'international advisers are
commonly  self-employed and have often invested a  great deal of time and effort
establishing  trusted, two-way  client relationships  - it  is only natural that
clients  may wish to follow their trusted  adviser if he chooses to move between
organisations'.

Currently,  when a financial adviser leaves  a financial services firm, both the
adviser  and the new firm are liable to the original firm. However, upon signing
the  proposed  broker  protocol,  firms  agree  to permit the transfer of client
information  once a client has signed data  release forms, in recognition of the
time  and effort the  adviser has invested.  The protocol effectively waives any
liability  that the adviser or new firm may have had to the old firm. There will
be  specific  rules  covering  what  pieces  of  client information advisers are
permitted  to take, and  full compliance procedures  to ensure that  no party is
unjustly affected.

AES  International General Counsel James McLeod commented, 'new model firms such
as  AES  see  no  reason  why  those  clients  who  wish to follow their trusted
financial  adviser  between  firms  should  be  prevented  from this and our own
proposition  enables our advisers  to build highly  valuable, portable, business
practices.   Client wishes should always come first  and firms need to deal with
the  inevitable risks and issues  that arise from adviser  movements in an adult
and professional matter.'

When leaving a company, an adviser will submit a list of their clients under the
assurance  that  the  information  is  only  relating  to  clients that they are
responsible for and they have acted in good faith in compiling the list. This is
designed  to  bring  increased  transparency  and  fairness to the international
marketplace,  and stop advisers that  have continuing client relationships being
penalised when they move firms.

Chief  Executive Officer, Sam Instone commented, 'it is inevitable that advisers
will  gravitate to those  organisations who offer  the strongest all-round value
proposition  but in  doing so,  the firms  they leave  need to be protected from
indemnity    liabilities    and   other   contractual   breaches.    Self-styled
"international  trade organisations" should in my view focus on addressing these
type  of serious issues  to benefit their  membership rather than becoming semi-
legitimate quasi-distribution networks.'

For  more  information,  or  to  find  out  about the services AES International
provide, visit their website at  aesinternational.com




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