FTC’s Proposal Would Give Some Advisors Greater Mobility, Recruiters Say
The Federal Trade Commission (FTC) last week proposed a rule that would ban employers from imposing noncompete contracts on workers. The proposed rule could have implications for the registered investment advisor community, say recruiters. Advisors hoping to take advantage of the proposed rule will need to be patient, however. The FTC says it will accept public comments regarding the proposal for 60 days after the proposal’s publication by the Federal Register. Then, if the rule is enacted in its proposed form, employers would have 180 days to nullify any existing noncompete agreements. The rule, even if enacted, may not apply to some entities, such as banks, savings and loan institutions and federal credit unions, which are exempted under the FTC Act, according to the proposal.
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