Restrictive covenants in advisers' employment contracts will continue to be enforced despite Towry's High Court loss, according to the law firm that represented Raymond James.
The wealth manager was ordered to pay the full costs of Raymond James' cases, after a judge found its advisers had not broken non-solicitation clauses when leaving the firm. But a survey of 116 financial services firms by Faegre Baker Daniels found the majority (83%) still insist on them when drawing up employment contracts. Alex Denny, a partner at the firm, said: "Restrictive covenants certainly have their drawbacks. They can be expensive to enforce and, if they are not carefully drafted, will have no legal benefit - as the Raymond James case illustrates. "That said, the courts h...
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