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Each Empower and Compound Planning provide funding advisory providers, retail brokerage accounts, retirement planning, funding administration, tax planning, property planning, insurance coverage evaluation, schooling funding and digital wealth administration, in accordance with Empower.
The allegations: The 13 advisors who moved to Compound Planning had been Private Capital staff when Empower closed on the 2020 deal, in accordance with Empower.
The workers may present advisory providers to particular person purchasers in addition to to individuals in employer-sponsored retirement plans, and Empower offered the advisors with confidential shopper data to assist them service the purchasers.
The advisor staff signed confidentiality, non-solicitation and mental property task agreements, Empower says.
Empower alleges that the previous staff used commerce secrets and techniques and Private Capital model goodwill to market to Empower purchasers. It cites a commerce journal article quoting the agency’s CEO as saying the agency wished to attraction to breakaway advisors who had been searching for a greater expertise.
“‘Breakaway advisors’ is a euphemism for advisors, like the person defendants, who can depart a agency and take purchasers and property with them however any contractual and commerce secret obligations the advisors owe to their present employers,” in accordance with the criticism.
Credit score: vacharapong/Adobe Inventory
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