View the article online at http://citywire.co.uk/wealth-manager/article/a744182
Why we quit Brewin for Charles Stanley: Leicester Six reveal warts and all
by James Phillipps on Apr 03, 2014 at 14:52
The six employees quit Brewin’s Leicester office to join Charles Stanley last year, prompting Brewin to issue a writ claiming breach of contract and compensation for damages.
In the 41-page defence document, the Leicester six pull no punches in describing why they became ‘seriously disillusioned’ with their former employer.
The document reads like a template for the tensions that can exist between the HQs of national wealth management companies and their regional offices.
The six had all worked at Brewin for between eight and 13 years, but the defence claims a number of long-held grievances finally came to a head leading them to walk out of the office, which managed around £800 million, last March.
Divisional directors Christopher Hailes and David Coulson were the longest-serving, having moved across when Brewin acquired Hill Osborne in 2000.
Office head Ed Cufflin and divisional directors Simon Hopewell and Stephen Baker were hired as a team from Quilter in July 2005 and business development manager Adrian Sawyer joined the following month.
Of course this is just one side of the story and our report of Brewin’s High Court writ shows how Brewin views the dispute as multiple breaches of contract. However, the nature of the allegations may well resonate with many regional wealth managers across the industry.
‘Having to give up contacts to a new nearby regional branch’
Apparently all went well in the early years, but the team’s first major gripe arose in 2008 when ‘without any adequate warning or consultation’ Brewin opened a nearby Nottingham branch.
Sawyer claims he ‘was asked to relinquish his contacts with around 100 intermediary firms across the East Midlands and pass these to the new Nottingham office’. The six claim this not only caused ‘material harm’ to these existing relationships, but also resulted in ‘material damage’ to the Leicester office’s business.
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