Non Comptete II

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Nov 4, 2008 11:53 pm

Non compete ##1 was pretty funny so here is non compete II.

 
I signed a non-compete a couple of years ago with A.G. Edwards.  They, as you know were bought by Wachovia, which was bought by Citi, hold on wait Wells Fargo.  Now they have structured the business for bigger producers, which new FAs generally aren't in that category.  I don't have a copy of my non-compete (didn't think I would need a copy) BUT my question I pose to this forum is how can I get out of it so I can continue my career somewhere eles?
 
Thank you!!!
Nov 5, 2008 12:06 am

Spoken by someone who doesn't have a clue.

 
Thanks Icecold
Nov 5, 2008 9:14 am

Ice's advice is spot on, kujhawks.  If you are planning on leaving or hoping to leave, you need legal counsel unless you are content to gamble with your career.  However, your predicament is more difficult than simply hiring an attorney since you did not even bother to keep a copy of your contract, as the attorney will need a copy of the contract(s) in order to advise you properly.  Needless to say, failing to keep records of important legal documents for any reason is a serious mistake.  That realization alone ought to be enough to convince you that you clearly would benefit from legal help.

If that's not enough, consider this.  If your missing contract was originally an AGE FC agreement it did not contain a non-compete clause, but a non-solicit clause.  There is a very big difference between the two.  You should start by doing some reading to be clear on the distinction.

Then there are a couple of other agreements that may or may not be relevant in your situation - your training agreement and/or your retention agreement. 

The fact that you said you signed something a couple of years ago presumably means you started with AGE then.  If you started new as a trainee, your training agreement will certainly be an issue as it stipulates how much you potentially may need to pay AGE/WS/whoever if you leave prior to the defined training period, which used to be 5 years from the date you entered production.  This is a contract issue completely independent of the non-solicit issue.

And of course your retention agreement adds additional restrictive covenants if you took the forgivable loan option.

The bottom line is you don't even sound like you yet know what you don't know, so calling anyone clueless probably isn't the wisest move right now.  Think of some of your clients who informed you they know pretty much everything they need to know about investing and then proceed to show by their words and deeds that they are really clueless, but don't realize it or are in denial.  Then look in the mirror and ask yourself if this issue is important enough to do right, or not.  It's up to you.  It's your career, and your life.

As Mark Twain said, "We're all ignorant, just on different subjects."

Nov 5, 2008 10:45 pm

Call your HR department and get a copy of your new hire paperwork. Tell them you lost it and need it for your files. They should fax it or mail it. You will not need an attorney, especially if it is a non solicit clause.  Conversation with clients after your departure should be ok.  They can not enforce making a friendly phone call to old friends. Even  if your firm tried to enforce its just hear say. It can not be proven. If you write to clients it cant be denied.  So dont do that.    Icecold is a big DA Im glad someone noticed

Nov 6, 2008 8:55 am

More free advice that is worth every penny you pay for it. 

[quote=covered calls]Call your HR department and get a copy of your new hire paperwork. Tell them you lost it and need it for your files. They should fax it or mail it. [/quote]

While you're at it, don't forget to install a large red flashing siren/light outside your office door to make sure your BOM and everyone up the line knows you are planning your departure so they can make the transition most difficult for you.

[quote=covered calls]You will not need an attorney, especially if it is a non solicit clause. [/quote]

He will not need an attorney if it is a non-solicit clause??  IF??  That's an awfully critical "if" wouldn't you say?  You don't know precisely what the exact legal issues are for him any more than he does, yet you're sure he doesn't need an attorney?!

Here's another if for you: what if there is more involved than simply the non-solicit, like for example the training agreement?  How does that impact him?  How should he handle that? What about the retention agreement?  Irrelevant?  Critical?  

How will these strategies change depending on if the firm he moves to is a signatory to the Recruiting Protocol?   

What does he do if he is slapped with a TRO? 

I could go on and on but I think my point is clear.  He can make an informed decision, or he can hold his breath and hope all will be well.   Maybe he'll get lucky, who knows?  It's only his livelihood that is at stake here, so why not simply roll the dice and hope he rolls snake eyes?

As the old saying goes, "A man should never gamble more than he can stand to lose." 

Nov 6, 2008 9:23 am

Dumb Ass= DA

Nov 6, 2008 9:27 am

DA = when one cannot make an intelligent point and instead uses all the feeble resources at his command to call someone names.

Much easier than actual thinking.


Nov 6, 2008 8:07 pm

The deal is this, it's a 5 year gig. You did not sign any retention agreement because you were not included. The agreement is fully transferable via merger or aquisition. To enforce or not to enforce is still made at the lower level i.e. complex. My manager who is awsome and as sharp as a razer flat out told me if you were mediocre or failing they wont come after you. It's not woth it to them as statistically you are broke and it's not worth their time or money to enforce. If you are in a right to work state your odds are even better.

 
If you are crest club or higher they will activelly enforce it. Typically the new company picks up the tab after negotiating directly with  the highering firm, not you.
 
It's been a year and 1/2 since I read it but I believe it's Paragraph 5 c or d I think.
Nov 7, 2008 6:23 pm

Thanks for all the replies.  Good stuff.

 
I tried the HR route and they said they didn't have a copy but my branch manager would.  I don't know if I want to set off the alarms and ask for it but I really need to know my options or more importantly the firm that hires me would.
 
I could go crazy in the office one day tell my manager to f off or something.  I could probably make it pretty funny.  I could make them fire me and then I think I am free to go somewhere else.
 
Thanks again
Nov 7, 2008 6:46 pm

"I could go crazy in the office one day tell my manager to f off or something.  I could probably make it pretty funny.  I could make them fire me and then I think I am free to go somewhere else."

 
Uh      yeah      good strategy.
Nov 7, 2008 11:11 pm
kujhawks300:

Thanks for all the replies.  Good stuff.

 
I tried the HR route and they said they didn't have a copy but my branch manager would.  I don't know if I want to set off the alarms and ask for it but I really need to know my options or more importantly the firm that hires me would.
 
I could go crazy in the office one day tell my manager to f off or something.  I could probably make it pretty funny.  I could make them fire me and then I think I am free to go somewhere else.
 
Thanks again
You just put a huge target on your back.  Don't say you weren't warned.
 
You better be moving at top speeed to move, because your BOM is now preparing to reassign your accounts.
Nov 10, 2008 2:39 pm

This was on registered rep, I just came across it. Not sure if it helps, but good information

http://www.schwabinstitutional.com/public/downloads/legalwhite_paper.pdf