From the desk of James Eccleston at Eccleston Law, LLC:
Waddell and Reed has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 5% to 50%. Additionally, there is a year one Asset Transfer payment (forgivable loan): 5% to 50%.
All proposed deals are negotiable and reflected in numerous agreements such as promissory note and employment agreements. Reps should retain qualified legal counsel to review those documents in advance of committing to transition to a new firm.