JPMorgan Chase & Co. and a former bank-based financial advisor have reached a temporary agreement in a dispute over client solicitation following the advisor's move to LPL Financial.
The advisor joined LPL in June after leaving JPMorgan. Under a stipulated agreement, the advisor has agreed to comply with the terms of his non-solicitation agreements, which prohibit him from encouraging former JPMorgan clients to transfer their assets to LPL, AdvisorHub reports.
In return, JPMorgan acknowledged that nothing in the agreement prevents Feutz from accepting inbound account transfer requests or servicing clients who have already transferred their accounts to LPL. The parties also agreed that the court does not need to rule on the request for a temporary restraining order.
The agreement represents an initial procedural step commonly seen in disputes involving restrictive covenants. The matter will now move to FINRA arbitration, where JPMorgan intends to pursue damages and a permanent injunction.
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