Ameriprise Financial has filed a temporary restraining order (TRO) against three former advisors—Jared B. Roskelley, Kyle L. Robertson, and Matthew J. Tinyo—who recently left the firm to join LPL Financial in Scottsdale, Arizona.
The lawsuit, filed in the U.S. District Court in Phoenix on February 12, 2025, accuses the advisors of breaching the Protocol for Broker Recruiting, alleging that they took confidential client information and solicited clients before officially resigning.
The dispute is the latest in a series of legal battles between Ameriprise and LPL over advisor recruitment practices, an issue that has gained traction within the financial services industry.
Allegations Against Former Advisors and LPL
Ameriprise claims that Roskelley, Robertson, and Tinyo misappropriated client data, violating their employment agreements. According to the lawsuit, LPL was not only aware of these actions but also encouraged and financially benefited from them.
This case echoes a broader legal conflict that began in July 2024, when Ameriprise sued LPL, accusing the firm of systematically directing advisors to improperly take client data upon their departure. LPL has denied these allegations, arguing that Ameriprise is attempting to suppress competition and intimidate advisors considering a transition to its platform.
Legal and Industry Implications
The lawsuit raises significant concerns over advisor recruitment and compliance with the Protocol for Broker Recruiting—a widely accepted industry agreement that allows financial advisors to take limited client information when switching firms, provided they adhere to certain rules.
The case also highlights growing legal scrutiny on how wealth management firms handle client transitions. The Securities and Exchange Commission (SEC) (www.sec.gov) and the Financial Industry Regulatory Authority (FINRA) (www.finra.org) have previously cautioned firms about client data protection and ethical advisor recruitment practices.
Previous Developments in the Ameriprise-LPL Legal Dispute
This is not the first time the two financial giants have clashed over advisor transitions. In December 2024, amid ongoing litigation, Ameriprise and LPL reached an agreement to use a third-party forensic examiner to identify and delete improperly retained client data. This agreement led to the denial of Ameriprise’s previous request for an injunction.
Despite that settlement, Ameriprise is now doubling down on legal action by seeking a new restraining order. The firm is also pursuing arbitration to secure permanent injunctions and financial damages from the advisors and LPL.
LPL’s Response
LPL has dismissed Ameriprise’s allegations, stating that it strictly adheres to industry protocols and does not encourage advisors to take confidential client information. A spokesperson from LPL described the lawsuit as an attempt by Ameriprise to control advisors through legal intimidation, rather than fair business competition.
“We respect advisor independence and uphold the highest ethical standards in recruiting practices. These allegations are baseless, and we will vigorously defend against them in court,” said an LPL representative.
Broader Impact on Financial Advisors and Clients
Legal disputes like this one can create uncertainty for both financial advisors and their clients. Advisors moving between firms must ensure they comply with industry regulations, while clients may face disruptions if their advisor’s transition is contested legally.
The lawsuit also emphasizes the importance of financial firms maintaining clear policies on client data handling to avoid regulatory issues. According to FINRA guidelines, firms must take proactive steps to protect client data and prevent unauthorized solicitation.
Conclusion
As Ameriprise and LPL continue their legal battle, the case underscores the complexities of advisor recruitment, data privacy, and corporate competition in the wealth management sector. The outcome of this TRO request could set new precedents for how firms handle transitions and reinforce the importance of compliance with industry protocols.
With financial regulations tightening, firms and advisors must navigate these challenges carefully to avoid litigation and ensure ethical client management practices.
For more information on financial advisory regulations, visit SEC’s official site (www.sec.gov) and FINRA’s regulatory guidelines (www.finra.org).
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A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for The Octant, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin