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UBS is making a course correction, replacing non-solicitation language that was recently introduced into some advisors' bonus agreements with new policies intended to mollify broker concerns, according to two people familiar with the matter.
The firm, which notified advisors Friday via a memo from President Tom Naratil and Head of Wealth Management USA Brian Hull, is making the adjustments in response to reactions to policy changes made this month.
Brokers were taken by surprise when UBS recently strengthened non-solicit language in bonus agreements that required advisors who signed them to agree to a 12-month non-solicitation period should they leave UBS.
"This announcement was so unlike the firm," says a UBS manager who asked not to be named in order to discuss the matter.
The policy shift wasn't consistent with how the firm handles such changes and left advisors confused, he said. In a conference call with brokers on Wednesday, Naratil and Hull apologized and explained what the normal...