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Brewin vs Charles Stanley: rival CEOs speak out
by Danielle Levy on Apr 11, 2014 at 10:55
‘We are almost witnessing an inflection point between an old style brokerage business and a modern, contemporary, professionally managed organisation and this is the fallout from it,’ he said.
He views Charles Stanley as a modern professional firm but feels some of the points raised in the defence, such as responding to the internal suitability review and the decision to focus on larger discretionary clients, are part and parcel of moving to a more profitable model.
The recruitment of teams to rivals and subsequent legal spats are nothing new in the industry, but what has proved most surprising is the decision to bring the dispute into the public domain via the courts. The exact motivations behind this are not yet known, as is often the case in litigation.
As well as feeling genuinely aggrieved on the merits of this specific case, Brewin Dolphin may view it as a warning to employees considering leaving, or to competitors looking to poach its staff.
‘These sorts of disputes are not unusual but court action is. It looks like Charles Stanley has decided to attempt to embarrass Brewin Dolphin by putting certain things in their defence,’ said Susan Hopcraft, a partner who specialises in dispute resolution at law firm Wright Hassall.
‘This is not unusual in litigation and no doubt Brewin Dolphin had its eyes open as to what happens when disputes become public in court proceedings.’
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