When financial advisors think about making a move, one concern that stops the conversation before it starts is this:
“I’ve got a disclosure on my U4. No firm will want me.”
But that assumption doesn’t always hold true—and we’ve got the proof.
In a recent AdvisorHub article, a veteran advisor at a major wirehouse made headlines for departing to a new firm. His production? Around $4 million. His U4? Not spotless.
The advisor had a pending customer complaint alleging that he exceeded the scope of his power of attorney in a client’s line of credit—resulting in over $1.8 million in claimed losses. In response, he denied the allegations and emphasized that he acted with the client’s best interest at the forefront of his recommendations.
We’ve chosen to remove the advisor’s name from our blog, as it’s not necessary for the larger lesson:
A U4 disclosure is not always a dealbreaker.
Firms Look at the Whole Picture
Recruiting firms aren’t blindly skimming BrokerCheck. They’re looking at:
- Your total production and book of business
- The context and type of disclosure
- Whether you’ve shown integrity and transparency in your explanation
- And, frankly, how much opportunity you bring to the table
In this case, the advisor was still welcomed by a major national firm. That speaks volumes. It shows that the right firm, presented with the full story, will make a decision based on more than a single data point.
Your Side of the Story Matters
The advisor added a written response to the complaint in his record, defending his actions and clarifying his intent.
When firms see that you’ve responded clearly and professionally, it shows how you’ll conduct yourself in tough situations. That goes a long way in building trust with potential recruiters and compliance teams alike.
At 3xEquity, we’ve helped many advisors with disclosures—pending, settled, or long-past—secure multiple offers and land with firms that are the right fit. The key is preparation, positioning, and discretion.
Don’t Let the Disclosure Hold You Hostage
If a mark on your record has kept you from exploring a move, you’re not alone. But you’re also not out of options. In fact, now may be the perfect time to start looking.
- Firms are actively seeking experienced talent.
- Many are focused more on cultural and business fit than spotless records.
- And with the right support, you can confidently address the disclosure without letting it define your future.
Get a Confidential Assessment
At 3xEquity, we specialize in helping advisors of all backgrounds explore their options, confidentially and strategically. We’ll help you:
- Position your practice and track record effectively
- Frame any disclosures with the right messaging
- Reach out only to firms likely to be a match
- Compare multiple offers side-by-side
And we do it all at no cost to you.
Don’t assume the answer is no—get the facts first.
Let’s talk. → [Click Here]
