Winckworth Sherwood

UK 200 2013 position: 94

Twelve-month non-competition restrictive covenant enforceable against financial adviser

Merlin Financial Consultants Ltd v Cooper, concerning 12-month non-competition restrictive covenants, suggests that they are easier to enforce in the financial services sector because of the strong relationships between advisers and clients, which are a particular feature of that industry. The courts seem to be showing greater willingness generally to uphold such clauses, in appropriate circumstances.   

Mr Cooper was a financial adviser (with more than 23 years’ experience) who worked for Merlin Financial Consultants). Mr Cooper entered into an agreement with Merlin under which Merlin paid him £43,200 for the right to receive income from Mr Cooper’s existing client base. This agreement contained covenants that prevented Mr Cooper from competing with Merlin in any capacity for a period of 12 months post employment. Mr Cooper’s separate employment contract contained similar, but more limited, restrictions…

Click on the link below to read the rest of the Winckworth Sherwood briefing.

Overview

Minerva House
5 Montague Close
London
SE1 9BB
UK
http://www.wslaw.co.uk

Turnover (£m): 25.70
Total Lawyers: 125