A restraint of trade agreement is something that is used quite often but very few people look closely at it and the implications of signing one. Are they enforceable? Do we know what it entails? Do we even know whether we have signed one? We unpacked this interesting but highly relevant topic with Guy Holwill, CEO of Fairbairn Consult.
Here are a few of the questions that were covered:
- Please give us a brief explanation as to what a restraint of trade agreement in the world of financial planning entails?
- You talk about the good, the bad and the ugly of these agreements. Please tell us more?
- Which restraints do financial planners typically sign?
- How enforceable are these agreements?
“It’s easy to sign a restraint of trade when someone is offering you a job and even easier if they are paying you to agree to the terms of the restraint. However, this can have serious implications for you and your clients if things don’t work out, so think carefully before you agree to any restraint of trade.” – Guy Horwill