Ameriprise Financial Services has filed a federal lawsuit against three former advisors and rival broker-dealer LPL Financial, alleging that the advisors took confidential client information before resigning in late January. According to the complaint filed Tuesday in US District Court for Arizona, advisors Jared Roskelley, Matthew Tinyo, and Kyle Robertson conducted “an irregular number of print jobs” involving documents containing client names, account numbers, and other personal data before leaving Ameriprise. The firm claims the trio used this information to solicit clients and were supported in the alleged conduct by LPL Financial, which is also listed as a defendant.
The lawsuit is the latest development in a growing legal battle between Ameriprise and LPL Financial as firms compete for top advisory talent and client assets.
Advisor data breach lawsuit unfolds
The case highlights the risks involved when advisors switch firms, taking possibly sensitive information with them in an effort to attract new clients.
This legal dispute adds to several controversies facing the wealth management industry, including issues related to client data privacy and competitive practices. The lawsuit’s outcome could have serious implications for the advisors directly involved and for industry practices in advisor transitions. Firms may need to tighten their protocols to prevent unauthorized sharing or printing of sensitive client information.
As the situation evolves, the implications of this legal battle will likely have lasting impacts on how client information is handled during advisor transitions within the financial services industry.
Photo by; cottonbro studio on Pexels