Each Empower and Compound Planning provide funding advisory companies, retail brokerage accounts, retirement planning, funding administration, tax planning, property planning, insurance coverage evaluation, training funding and digital wealth administration, in keeping with Empower.

The allegations: The 13 advisors who moved to Compound Planning have been Private Capital workers when Empower closed on the 2020 deal, in keeping with Empower.

The workers may present advisory companies to particular person purchasers in addition to to individuals in employer-sponsored retirement plans, and Empower supplied the advisors with confidential shopper data to assist them service the purchasers.

The advisor workers signed confidentiality, non-solicitation and mental property task agreements, Empower says.

Empower alleges that the previous workers used commerce secrets and techniques and Private Capital model goodwill to market to Empower purchasers. It cites a commerce journal article quoting the agency’s CEO as saying the agency needed to enchantment to breakaway advisors who have been on the lookout for a greater expertise.

“‘Breakaway advisors’ is a euphemism for advisors, like the person defendants, who can go away a agency and take purchasers and belongings with them however any contractual and commerce secret obligations the advisors owe to their present employers,” in keeping with the criticism.

Credit score: vacharapong/Adobe Inventory