Final answer:
To be compensated by a prior broker, a dissociated associate should review their contract, calculate the compensation owed, follow the settlement process, and possibly engage in legal action if there are disputes.
Step-by-step explanation:
The procedure for a dissociated associate to be compensated by the prior broker can vary depending on the terms of the agreement between the associate and the broker, as well as the laws and regulations governing such arrangements. Typically, the process would involve several steps.
- Review of the Agreement: The dissociated associate should first review their contract with the broker to determine the terms of their compensation, including any clauses related to dissociation.
- Calculation of Compensation: Compensation due is often based on the revenue generated by the associate's clients until the date of dissociation. The broker would calculate this according to the agreed-upon commission rates.
- Settlement Process: Once the amount is calculated, the dissociated associate may need to submit a formal request for compensation. The broker then processes the request and issues the payment per the terms of the agreement.
- Legal Action: In the event of a dispute or if the broker refuses to compensate, the dissociated associate might have to engage in a negotiation or even legal proceedings to resolve the matter.
It's important for the associate to have a clear understanding of their rights and the terms of their contract, seeking legal advice if necessary.