I have a question about non compete agreements. Say a large advisor and his assistant leave a firm. The CEO ensures that he does so quietly without tipping off clients. The clients call in wondering where “Joey” is? When they realize he is no longer there, they call his cell phone since he had that number on his email signature line while he worked at the company. Would this firm have recourse against this? Second, what if a client asks where this advisor went and a person at the firm told them where he went. Is giving this factual information against CFAI ethics and non compete agreements? Edit: The advisor and assistant have moved on to a different firm.
ditchdigger2CFA Wrote: ------------------------------------------------------- > I have a question about non compete agreements. > > Say a large advisor and his assistant leave a > firm. The CEO ensures that he does so quietly > without tipping off clients. The clients call in > wondering where “Joey” is? When they realize he is > no longer there, they call his cell phone since he > had that number on his email signature line while > he worked at the company. > > Would this firm have recourse against this? > This kind of thing would be covered under a non-solicitation agreement. It’s possible that Joey can’t advise the client. > Second, what if a client asks where this advisor > went and a person at the firm told them where he > went. Is giving this factual information against > CFAI ethics and non compete agreements? > No > Edit: The advisor and assistant have moved on to a > different firm.
This issue has been raging on at my firm for the last year or so where we had 4 guys leave to set up their own shop. I believe they were not allowed contact with clients upon separation for 6 months as it says in our contracts. Well, the 4 guys waited a total of probably a week before they physically began visiting clients to try and shift them over. Needless to say, we’ve retained something like 97% of all of our clients during the last year leaving the 4 guys up sh$t creek without a paddle. From what I’ve read in my contract I’m not allowed to advise/solicit/contact a client until that 6 months period is over.