EdwardJones NON COMPETE - Left last week
I left Edward Jones last week, and currently working with LPL. I have not sent my client any letters nor called them. I heard that you can send them a tombstone letter letting your clients know where you have gone and your phone #. Is this true????
Also I have read on the the board that the clients aren't edward jones either, by arbitration.
So is there other ways around this. I poured 5 years into my clients and I wanna make sure I'm doing everything I can legally.
Perhaps you should have thought to ask those questions before you left. I would have thought LPL would have covered things like that with you during the transition. I'd suggest calling LPL's legal folks rather than asking the folks, who aren't attorney's (unless you contact Bill), here for legal advice.
For future reference, you should look before you leap. And the correct spelling is Kool-aid. With a K.
Good luck with your transition.
Bill is the man, the myth, the legend. He eats Non-Compete Clauses and sh*ts Gold.
If you come to Lpl, they cover all of that information with you. They did for me and everyone else that I know who has moved.
Man are you behind the 8-ball. Jones has had a week on the phones telling YOUR clients that all is well and good. Making them feel warm and fuzzy in a soft green blanket.
Ok - my situation is a little different, but first let me start out with:
1) I have searched the forums on this topic and hope to avoid the standard responses from the the EDJ haters and the Kool-aid drinkers
2) I am exceeding expectations at EDJ -- I am no slacker. I want to leave the firm because I don't like the 'culture' of the firm, and as I gain more experience I can see the advantage of having more flexibility with clients
I started w/ EDJ as new/new about a year ago. I want to jump ship and move to another firm. My problem is not with the 'non-solicit' portion of the contract I signed, but with the '$75,000' of training costs they could come after me for. Has anybody had any success getting out of paying them the money and moving to another firm?
Not that it is relevant, but I'm sure it will come up -- I wish to time my inevitable move now because my AUM is still relatively low, but building fast --- in my mind, the longer I wait the more I will lose when I do move. Additionally, I don't know how much more time I can spend with these Kool-aid drinkers. Not that there is anything wrong with this, but it is just not my thing. Yes, I knew there was some of this prior to accepting the job - but in my defense, I could have never have imagined the level to which they want to entwine themselves in my life. Let's also assume that I have no moral issue with taking the training and leaving now that it is paying off.
Again, this post is not meant to offend the EDJ lovers or incite the haters. I'm just looking for somebody that has been successful in getting out of paying to leave.
Thanks in advance
I have heard of it being negotiated down, but not avoided altogether. If you have a very small asset base, you might have better luck. Not sure. You NEED to discuss upfront with your new firm and possibly a lawyer. The new firm may be willing to help you out.
Stop selling and they will ask you to leave. It also works if you just leave the industry.
Before you leave and go somewhere else you may want to ask others what they think of where you are going, whether it is the same, better, different etc. I only say this because you most likely only have 1 yr under your belt and really the grass is RARELY greener on the other side. My .02
I am also not fond of Jones culture. However, I can choose with whom and how much time I spend in that culture. I signed for three years and have a moral and legal obligation to do so. It takes three years to begin to be competent in this business, so I have no intention of leaving before then. Plus, it will take that much time to build enough assets to make myself interesting to another company, or be able to afford to be independent. The fact that you want to walk away after one year shows a weakness in character, maturity and integrity. I may not choose Jones as a permanent home, but I have the good sense to realize that there is much that I can learn here, either because of or in spite of the culture. And I choose to be happy whatever my current situation.
You probably should have looked into this before you abandoned ship ... from the sounds of it you may not have left on the best of terms SO it may be asking a lot for your former employer to do you a favor and send out 'tombstone letters'.
My only question back to you is ... why can't you do this yourself? Are you too lazy to type out a letter to people who have USED YOUR SERVICES and let them know that you've moved so you can keep your client base?
Best of luck at LPL.
For what it's worth my experience has been that EDJ is relentless on their agreements. For the non-solicits, if you signed it they will seek to enforce it, however the variables change if goes to court (for the temporary injunction (TRO)) and arbitration (for the permanent injunction and damages) and you're in a sympathetic jurisdiction. I had one EDJ instance where the court issued a TRO but still let the rep contact his clients. He could call them to talk about other things then if the client brought up the account and asked to move the client could simply sign an attestation that the ACAT request was unsolicited. In that same case the arbitration panel DENIED the permanent injunction. Another case EDJ was successful. So it may very well depend on how far you want to go and how the court/panel will view the matter.
Also left Jones recently and was surprised by call from headquarters. Asked about address & phone number of new office (LPL) and was told this information wd be included in letter sent to clients. I have been told that they have been doing this lately and it is beyond my understanding. It makes me wonder if they are somehow baiting a trap in some way. When it happened I found it surprising and confusing and was definitely taken off guard.
Sent the letters and did tombstone in newspaper. Wait and see.
Jones has been sending those letters for years. It's not something new. It may be an insidious ploy to get you to let your guard down and then do something stupid that violates all sorts of rules. Or it could be Jones communicating with your client openly and honestly about your departure, what Jones is going to do to continue the service they expect from the company, and who is going to replace you. They're also going to send a pamphlet the industry has put out about what to do when your FA switches firms. None of it makes it all sound like you did a wise thing.
They're looking out for themselves by trying to convince your clients that they should stick with EDJ and not follow you. BTW, they're also communicating with your former BOA that if you try to move accounts to your new firm, you could be violating the non-compete clause in your contract. She has instructions on who to call to report it.
Good luck with the move.
Actually, Jones has not been including the contact info for the FA's new location for very long. They started it a few years ago because they got sued. Jus' Jones being Jones.