Getting Around Non Competes

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Feb 12, 2011 4:52 pm

I'm interested in hearing how advisors have gotten around Non Compete and Non Solicits.

How many have broken free clean? No settlements, No arbitration?

Feb 12, 2011 4:59 pm

Particularly interested in breaks from firms that are/were Non Protocol.

Feb 14, 2011 11:29 am

Like any legal suit, you can be dragged into arbitration simply by the request/demand of another party. The validity of the charge is not determined until your hearings, and of course you get to pay to defend yourself all the while. In my non professional legal opinion, the arbs will support a broker that simply announces his resignation and new employment. So, a tombstone mailing is the best way to get what you want, and stay out of trouble. I'm in the middle of an arb like this and I have extensively studied 10 yrs worth of cases via finra awards online. In order to lose at Finra, you must generally do and get caught doing something clearly wrong, unethical, illegal. But, there are some contracts that stipulate redemption costs for transfer of assets, and a number of cases like that have been upheld, with significant damages to departing reps. Do your homework, get some legal advice, and for goodness sake don't be a fool and do anything blatantly or even remotely "stupid".  

Feb 14, 2011 4:36 pm

Thanks for the comments.

I'm preparing to jump ship, so I'm doing a lot of research. Every move is being calculated and not made before obtaining legal counsel.

Still, its good to hear other advisor's tales. I like to know what to expect.