Restrictive covenants -- such as noncompetes, nonsolicits, and confidentiality agreements -- govern what advisers can and cannot do after they leave their firm. These provisions play a pivotal role when advisers consider switching firms, launching their own practice, or selling their book of business.
Can the adviser work for a competing firm at all? Are they allowed to contact former clients? Does their investment strategy rely on confidential information from the prior firm? The answers often depend on the scope and enforceability of the applicable restrictions.
Join attorney Isaac Mamaysky for a session that explores the shifting legal landscape surrounding these post-employment restrictive covenants. Some states have prohibited or curtailed noncompetes, and the FTC recently issued a rule banning them nationwide -- although that rule is currently stayed by court order and may ultimately be abandoned by the FTC. Courts are also more closely scrutinizing nonsolicit and confidentiality provisions to ensure that they are narrowly tailored and truly protect legitimate business interests.
Participants will gain a comprehensive overview of the legal landscape governing restrictive covenants, with practical insights and real-world application. Specifically, participants will learn:
- The most common types of restrictive covenants and what they are intended to do;
- An overview of state-specific requirements that limit the enforceability of certain restrictions;
- Current regulatory trends, including efforts to limit or ban noncompetes in several jurisdictions; and
- Practical guidance for advisers considering a transition from one firm to another.
