The financial services industry, particularly the securities-brokerage trade, has a less-than-storied history of growing business by poaching successful financial advisers.
Big producers are lured with bonuses, or forgivable loans, that total up to two years' worth of an adviser's past commissions and fees that can total six to seven figures.
The recent Allstate Insurance suit against Minneapolis-based Ameriprise Financial (AMP), however, is more about alleged theft of confidential client and marketing information, according to securities industry lawyers and legal coverage.
"Specifically, Ameriprise is instructing Allstate Life Insurance Company 'Exclusive Financial Specialists' [EFS] to turn over Allstate … confidential information to Ameriprise and then use the confidential information to unlawfully solicit [Allstate] customers on behalf of Ameriprise," according to the Allstate suit, filed in federal court.
Ameriprise is contesting the lawsuit. Run for 15-plus years by CEO Jim Cracchiolo, a former American Express executive, the company has mushroomed into a global investment and insurance conglomerate.
AMP earned $1.3 billion last year working through a network of 10,000 financial advisers serving 2 million clients. It's also been a top-flight investment. The stock has increased in value by more than four times since 2009, the end of the last recession.
Allstate, also a financial behemoth, sued Ameriprise after the company lured an unspecified number of Allstate employees in several states.
The suit indicates that Ameriprise is as much after the competitive data as agents. The so-called Exclusive Financial Specialists that Allstate says Ameriprise particularly covets are the information gatekeepers who work with the financial-product peddlers.