Non-dealing clauses: Are strict covenants unfair on clients?

Non-dealing clauses effectively lock in a firm's clients for a specified period of time - usually six or 12 months - during which the client can't leave, even if their adviser does. This is different to non-solicitation clauses, which permit the client to follow their adviser as long as the client initiates contact. The rise of non-dealing clauses almost three years after the 'victory' for advisers and clients in Towry versus Raymond James is "ironic", according to a lawyer. "The case that put clients back on the map", said Alex Denny, partner at Faegre Baker Daniels, "has led to a...