In April, the Federal Trade Commission issued a final rule:
“to promote competition by banning noncompete agreements nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation”.
In so doing, many advisors have suddenly become free agents with new opportunities and less risk.
In the past, tight “non-solicit” provisions in employment contracts prohibited advisors from taking their clients with them. Many have stayed in bad situations for fear of leaving and losing all their business or facing litigation. Now, the hurdles have been lowered for moving your business or going independent and aligning with new strategic partners who can better support your long-term objectives.
This rule change will surely see legal challenges. If you have been subject to a non-solicit, I highly advise you talk with an attorney. You may not be Shohei Ohtani or LeBron James, but you may now be a free agent who can leverage your stats and skillset and explore the market for your talent.
Let’s discuss what opportunities may exist for you. Glad to be your business agent.