Non-solicitation agreements are scripted to keep your clients out of poachers' pockets, but is having one just asking for trouble?
Do you need a non-solicitation agreement when you work with other firms? Every IFA would welcome a referral from a peer, but referring clients to other advisers for services you do not provide can be a risk. Poaching When advisers refer their clients to another firm with an advice arm, that firm will naturally be tempted to cross-sell, said Andrew Whitely, director of IFA firm Provisio. “A private bank we referred clients to tried to market services to our clients, despite a signed contract which included a clause about cross-selling,” he said. “The marketing department of the...
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