RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

What the Charles Goldman and David Brochu lawsuits say about the RIA business

Good people and good companies sick lawyers on each other when so much happens so fast

Author Brooke Southall May 13, 2010 at 6:23 AM
Admin:
no description available
What really happened with Charles Goldman leaving Schwab is finally coming out in a lawsuit

Stephen Winks

Stephen Winks

May 13, 2010 — 6:01 PM

ISN’T THE CHARLES GOLDMAN SUIT AS MUCH ABOUT THE TENUOUS STATE OF THE INDUSTRY AS IT IS ABOUT CHARLES GOLDMAN?

In a period of rapid change, where old business models are superceded by the new faster, better cheaper value propositions, the futility of our largest firms of using litigation to protect the the old order is symptomatic of the industry’s tenuous state.

We all feel the uncertainty, the feeling the other shoe is about to drop. The Charles Goldman situation is not really as much about Charles Goldman as it is an out growth of this insecurity of very large firms who are discovering they have lost their edge. There is no question the industry is moving from advice being incidental to trade execution to trade execution being incidental to advice. Essentially, the industry has become insular to anyone’s best interests but its own. Thus the hair trigger to sue. Rather than being open, aligned with the best interests of the consumer and advisor, embracing industry redefining innovation in the best interests of the consumer, instead the industry has deemed this innovation as highly disruptive to its increasingly outdated busines model. It is as if our largest firms don’t know what to do, so they sue. This is a cutural problem that is not just limited to pushing back on innovation.

In the evolving new order of firms in the best interests of the consumer, the Charles Goldman suit would have never been needed to assure fair play and equity.

SCW

Sam Franco

Sam Franco

May 15, 2010 — 12:10 PM

It is ignorant to think there is more to this suit than pure entitlement to a payout based on the feeling it was earned money.


Related Moves

Orion rescinds RTO order after its staff rebels by hijacking company email list, distributing petition and tipping off RIA media

CEO Natalie Wolfsen suffers first setback and rescinds a return-to-office (RTO) policy after week of protest to work on a more collaborative agreement on a post-COVID new normal

November 23, 2023 at 12:20 AM

Orion Advisor Solutions calls 6% staff reduction a 'final action,' after ballooning headcount 40-plus percent since 2020 by gorging on Brinker, Redtail and five other companies

The Omaha, Neb., administrator of $3.6 trillion will cut 'duplicative' back office jobs to reduce staff to 1,320 from about 1,400.

September 30, 2023 at 2:31 AM

Orion names 'left-brained' Natalie Wolfsen as CEO to replace Eric Clarke, and AssetMark, which synchronized its announcement, hires Michael Kim as her replacement

Orion Chairman Charles Goldman again lures his protege to self-replace, while Michael Kim was 'integral to AssetMark’s record financial performance over the past several years'

September 8, 2023 at 11:58 PM

Cetera hiring Mike Durbin as CEO -- overseeing its existing 'CEO' -- completes Genstar's stellar HR week after it put Charles Goldman atop Orion's board -- with 'exponential' growth in mind for the 'middle market' companies

The Los Angeles broker-dealer nabbed the Fidelity legend to take its $118-billion AUM and 8,000 advisors higher, just as Orion -- also majority owned by Genstar -- makes a similar move.

May 18, 2023 at 1:46 AM

See more related moves

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo