January 25, 2024
Louis Diamond Quoted
By Sam Bojarski
Addressing the use of non-solicits, which are particularly common in the financial advice industry, recruiter Louis Diamond said that a broader ban could have major impacts.
‘I would have to think that firms who are paying advisors all this money to come over would have to adopt different deal structures,’ said Diamond, president of Diamond Consultants. ‘If an employer is investing all this money to bring over an advisor, then they’re losing a critical protection on their investment.’
Via their client alert, Breakaway Partners recommended that employers review any restrictive covenants they might have and to exercise caution with regard to remote employees and restrictive covenants.
California is home to several large RIAs including Beacon Pointe Advisors, Lido Advisors and IEQ Capital, among others. None of these firms responded to requests for comment for this story.