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Andrew Shedlock Quoted in CityWire Article

News | May 10, 2023

Andrew Shedlock, a partner in Kutak Rock’s Minneapolis office, is quoted in the article "How Could an FTC Non-Compete Ban Shake Up the RIA Industry?" published May 9 in CityWire.

The article discusses the FTC’s proposed non-compete ban making it illegal for employers to enter into a non-compete or maintain any existing non-compete with an employee. Among RIAs, non-competes are one type of restrictive covenant used by employer. RIAs also use non-solicitation agreements which prohibit former employees from soliciting a company’s clients, a covenant that would not fall under the FTC’s proposed ban. 

“I would expect to see more specific non-solicit provisions as a consequence of this rule, and more contractual detail about what types of client contact is and isn’t permitted,’ said Shedlock. Pointing to states like California that ban non-competes, Shedlock said that businesses have already shown they can operate without using non-competes. He added that a final ruling from the FTC would likely attract lawsuits from aggrieved parties.

Read the full article here.

Andrew is a litigator who focuses his practice on representing broker/dealers, Registered Investment Advisors (“RIAs”), financial planners, Certified Financial Planners®, CFPs®, financial advisors and other financial institutions and professionals in litigation, arbitration, defense of regulatory enforcement actions, general regulatory and compliance matters, broker and advisor transition matters, guiding and counseling advisors and brokers going independent through all stages of the process, and buy/sell transactions (whether larger or smaller transactions).