Edward Jones Job Offer - Extreeme No Compete Though

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Comments (6)

wakeboardermike in Provo, Utah

27 months ago

I have received a few different job offers. One is with a small company (1 man) and will give me about a 60-70% payout but I am on my own with no training or anything.

The other is Edward Jones who offers the world for training and my chances for succeeding are very high. The thing that I am worried about when it comes to EJ is their no compete. It looks like after I sign with EJ I can't leave. If i leave I can't talk to any clients for a year and if i do they will sue me and I must pay attorny fees along with loosing. I spoke with a layer and he said that this was reasonable.

Question: If I go with EJ I am essentially marrying their firm correct? Should this deter me? What are the chances that clients would come with me after a year of not speaking with them?

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Wealth Manager in Pleasanton, California

27 months ago

Go get yourself a different attorney. Brokers leave firms all the time and non compete clauses are almost impossible to enforce. The exception to this might be if the firm was GIVING you a large book of business. You need to speak with an attorney who is familiar with our industry.

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wakeboardermike in Provo, Utah

27 months ago

Wealth Manager in Pleasanton, California said: Go get yourself a different attorney. Brokers leave firms all the time and non compete clauses are almost impossible to enforce. The exception to this might be if the firm was GIVING you a large book of business. You need to speak with an attorney who is familiar with our industry.

So are you saying that I could leave and start calling up clients and getting them to say with me?

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wakeboardermike in Provo, Utah

27 months ago

I wrote the layer and he said this:

As sure as I am that the sun will rise tomorrow, I can assure you that
the EJ non-compete is not only completely enforceable as written but
that there are published cases wherein even more rigorous non-competes
have been successfully enforced. (Cases are only published if they
reach the appeals court - the most recent case came out last month
from the Missouri Supreme Court on this very issue) While I am out of
the office right now and not able to confirm, I'm pretty sure I read a
couple of published cases where EJ was the Plaintiff enforcing the
non-compete. I have worked for Missouri clients that have enforced
more rigorous non-competes with success. This isn't even a close call,
it is as close to a slam dunk truth that there is in the law.

My professional advice given, my personal advice is to run far away
from people that are either ignorant of significant policies in their
firm related to your recruitment, or, are deliberately
mis-characterizing them.

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Wealth Manager in Dublin, California

27 months ago

It's not even worth debating. I have almost 10 years experience and have over a dozen friends in the business who have successfully moved to different firms. There is a protocol agreement between broker dealers that clearly spells out the rules when a broker leaves a firm and tries to take their clients with them.

That all being said I wish you the best of luck should you decide to enter the industry--wm

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Series 7 Exam Tutor in Pennington, New Jersey

2 months ago

Having to deal with a non complete at some point in the future will be a good problem. It will mean that you have developed a book of business. I would go with the firm that would more likely help you develop a book of business.

Michael Weiss, CFA
www.series7examtutor.com
www.series65examtutor.com

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