Two financial advisers in KZN turned to the High Court in Pietermaritzburg after being debarred by their former employer.
According to an article in the Mercury, the reason for the debarment, given by the bank, was that the two advisers “stole” high net worth clients by sending information to their wives’ private emails prior to resigning and starting their own business.
The advisers accused their former employer of “…trying to ruin them and stamp out competition by having them struck from the Financial Services Board’s register,” according to the article in the Mercury.
In an urgent application in the KZN High Court last week, they asked that the debarment be lifted so that they could continue working pending a review of the barring decision. In terms of an order taken by consent before Judge Esther Steyn, the ban was lifted immediately. A panel of three senior advocates will now be tasked with probing the matter further to report back to the bank by the end June on the legality of its debarring decision, writes Legalbrief.
We reported on a similar case in August last year in an article titled Debarments Contested in Court.