Brewin Dolphin is suing Charles Stanley and former members of staff for conspiring to poach a total of 18 employees to set up a base in Leicester.
The High Court claim comes after six senior employees from Brewin Dolphin’s own Leicester office, including former branch head Ed Cufflin, left the firm in March to open a Charles Stanley base in the same location. Brewin Dolphin accuses these employees of violating their contracts and collaborating with Charles Stanley ahead of their departures.
Brewin intends to claim damages for any losses that may be caused by clients moving their money to Charles Stanley following the staff departures and against each of the six employees for breaching contracts.
The former employees are also said to have acted as “recruiting sergeants” for Charles Stanley, resulting in the departure of a further 12 of Brewin’s employees.
Brewin says if half of the total £800m managed by its Leicester office moved to Charles Stanley, it could lose in excess of £2m a
year in revenue. The High Court claim will call for “exemplary dam–ages” to be paid so that Charles Stanley cannot make a profit from hiring the former Brewin Dolphin staff.
A spokeswoman from Charles Stanley says all the claims made by Brewin Dolphin will be “vigorously resisted”.
Brewin Dolphin head of investment management Stephen Ford says the firm is not prepared to comment further while the matter is subject to court proceedings.
Thomas and Thomas Fin-ancial Services managing dir-ector Darren Lloyd Thomas says: “There is always a risk that if an adviser leaves, client money will follow.”