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When I got inside the compliance castle at Charles Schwab I learned of several Billion Dollar RIA's that committed compliance violations, such as forging wire transfer forms, that were allowed to stay on the Schwab platform and for which no Suspicious Activity Report was completed. While another RIA was booted for swearing on a telephone call.
Broker Dealers seem quite casual, if not indifferent, to informing RIA clients that they have terminated the contract with their advisor. Almost like telling a motorist he left his car lights on. Broker Dealers refer to these individuals as account holders, while RIA's refer to them as clients. If you ask a compliance person at a Broker Dealer how the recipients of the notice of termination are likely to "feel" after receiving notice, they will show you that they have not given the matter much thought, and really don't care.
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