As we have discussed on this Blog over the past several years, the Protocol for Broker Recruiting (“Protocol”) allows for reciprocal poaching of brokers. More specifically, if a broker leaves one Protocol firm for another Protocol firm, the broker can (a) take certain account information (client names, addresses, telephone numbers, email addresses, and account title information) to his/her new firm and (b) solicit the clients he/she serviced at his/her former firm. Naturally then, the Protocol’s requirements conflict with confidentiality and restrictive covenant provisions that are commonly found in broker employment agreements and firm policies. Continue Reading Former Protocol Members Are Stepping Up Their Restrictive Covenant Enforcement

On Wednesday, July 25, Seyfarth Shaw partners J. Scott Humphrey and Justin K. Beyer are presenting webinars for myLawCLE.

Scott Humphrey is presenting “Protecting Confidential Information & Client Relationships in the Financial Services Industry” webinar on July 25, 10 a.m. – 12 p.m. Eastern. The webinar will focus on the following topics:

  • What are (and are not) considered trade secrets in the financial services industry
  • Types of restrictive covenants and which covenants are most likely to be enforceable in court and before FINRA
  • Practical steps financial institutions can implement to protect trade secrets and client relationships
  • What to do if your trade secrets are improperly removed or disclosed, or if a former employee is violating his/her restrictive covenant agreements
  • How to prosecute or defend a case against a former employee who is a FINRA member
  • The impact of the Protocol for Broker Recruiting on trade secrets and client relationships

For more information or to register for “Protecting Confidential Information & Client Relationships in the Financial Services Industry” webinar, click here.

Justin Beyer is presenting “The Anatomy of a Trade Secret Audit” webinar on July 25, 2 p.m. – 4 p.m. Eastern. The webinar will focus on the following topics:

  • Identifying trade secrets and secrecy protections
  • Effective secrecy protections, including employment and non-compete agreements
  • Effective hiring and termination protocols, including effective exit interviews and termination protocols
  • Employing a comprehensive approach and trade secret protection plan
  • Managing and working to protect computer-stored data, including responding to emergency issues related to computer fraud and security breaches

For more information or to register for “The Anatomy of a Trade Secret Audit” webinar, click here.

On Tuesday, March 27, in Seyfarth’s second installment in its 2018 Trade Secrets Webinar Series, Seyfarth attorneys Scott Humphrey, Erik Weibust, and Marcus Mintz will focus on trade secret and client relationship considerations in the banking and financial services industry, with a particular focus on a firm’s relationship with its FINRA members.

The panel will address the following topics:

  • Practical steps financial institutions can implement to protect trade secrets and client relationships
  • What to do if your trade secrets are improperly removed or disclosed or if a former employee is violating his/her restrictive covenant agreements
  • How to prosecute a case against a former employee who is a FINRA member
  • The impact of the Protocol for Broker Recruiting on trade secrets and client relationships

The CLE webinar is one hour long and is from 1:00 p.m. to 2:00 p.m. Eastern.

For more information and to register, click the button below.

 

webinarOn Thursday, April 27, at 12:00 p.m. Central, Seyfarth attorneys will present Protecting Confidential Information and Client Relationships in the Financial Services Industry.

In Seyfarth’s second installment in its series of 2017 Trade Secret Webinars, Seyfarth attorneys Scott Humphrey, Robyn Marsh, and Dawn Mertineit will focus on trade secret and client relationship considerations in the banking and financial services industry, with a particular focus on a firm’s relationship with its FINRA members.

The panel will address the following topics:

  • Practical steps financial institutions can implement to protect trade secrets and client relationships
  • What to do if your trade secrets are improperly removed or disclosed or if a former employee is violating his/her restrictive covenant agreements
  • How to prosecute a case against a former employee who is a FINRA member
  • The impact of the Protocol for Broker Recruiting on trade secrets and client relationships

Please join us for this informative webinar:

register

shutterstock_74943355We are pleased to announce the webinar “Protecting Confidential Information and Client Relationships in the Financial Services Industry” is now available as a podcast and webinar recording.

In Seyfarth’s second installment of its 2015 Trade Secrets Webinar series, Seyfarth attorneys will focus on trade secret and client relationship considerations in the banking and finance industry, with a particular focus on a firm’s relationship with its FINRA members.

As a conclusion to this well-received webinar, we compiled a list of key takeaway points, which are listed below.

  • Enforcement of restrictive covenants and confidentiality obligations for FINRA and non-FINRA members are different. Although FINRA allows a former employer to initially file an injunction action before both the Court and FINRA, FINRA, not the Court, will ultimately decide whether to enter a permanent injunction and/or whether the former employer is entitled to damages as a result of the former employee’s illegal conduct.
  • Address restrictive covenant enforcement and trade secret protection before a crisis situation arises. An early understanding of the viability of your restrictive covenants and the steps that you have taken to ensure that your confidential information remains confidential will allow you to successfully and swiftly evaluate your legal options when a crisis arises.
  • Understand the Protocol for Broker Recruiting’s impact on your restrictive covenant and confidentially requirements. The Protocol significantly limits the use of restrictive covenants and allows departing brokers to take client and account information with them to their new firm.

To accommodate our global audience, the third installment in the 2015 Trade Secrets Webinar Series will be available as an on-demand broadcast. Please register to receive access to the International Trade Secrets and Non-Compete Law Update broadcast here.

We are pleased to announce the webinar “Protecting Confidential Information and Client Relationships in the Financial Services Industry” is now available as a podcast and webinar recording.

In Seyfarth’s sixth installment of its 2014 Trade Secrets Webinar series, attorneys Scott Humphrey, Jason Stiehl and Rebecca Woods, focused on trade secret and client relationship considerations in the banking and finance industry, with a particular focus on a firm’s relationship with its FINRA members.

As a conclusion to this well-received webinar, we compiled a list of key takeaway points, which are listed below.

  • Enforcement of restrictive covenants and confidentiality obligations for FINRA and non-FINRA members are different. Although FINRA allows a former employer to initially file an injunction action before both the Court and FINRA, FINRA, not the Court, will ultimately decide whether to enter a permanent injunction and/or whether the former employer is entitled to damages as a result of the former employee’s illegal conduct.
  • Address restrictive covenant enforcement and trade secret protection before a crisis situation arises. An early understanding of the viability of your restrictive covenants and the steps that you have taken to ensure that your confidential information remains confidential will allow you to successfully and swiftly evaluate your legal options when a crisis arises.
  • Understand the Protocol for Broker Recruiting’s impact on your restrictive covenant and confidentially requirements. The Protocol significantly limits the use of restrictive covenants and allows departing brokers to take client and account information with them to their new firm.
  • Use of cloud-based services is increasing, including in the financial services industry. This creates different risks for protecting trade secrets with potential theft, exposure, or loss from cloud providers, hackers, and rogue or sloppy employees. A comprehensive and preventative slate of measures should be considered in order to ensure protection from each of these threats and to manage and mitigate the consequences of a compromise of protected information. “Analog” protections, such as confidentiality agreements, employee training, and basic security safeguards remain relevant. “Cloud” protections should be added, however, and include maximizing technology-based security features, negotiating savvy and strong vendor agreements, and obtaining properly-scaled cyber-insurance coverage. Care should also be taken to ensure that compromise of proprietary information that includes personal information may trigger federal and/or state breach notification obligations.

Please join us for our next webinar on September 17th, Ins and Outs of Prosecuting and Defending Trade Secret Injunction Cases