MFA sends letter on broad UK non-compete limits

MFA submitted a letter to the UK Department of Business and Trade to warn against broad non-compete limits for financial service professionals. Overly broad restrictions would weaken firms' ability to protect proprietary investment strategies, dampening innovation, eroding London's competitiveness, and driving capital and talent to rival financial centres.

The letter outlines the following recommendations:

• Preserve the UK's existing case-by-case legal framework rather than adopt one-size-fits-all statutory caps.

• Permit longer-duration non-compete agreements for highly compensated professionals who negotiate their employment terms.

• Exclude gardening leave and compensated forfeiture-for-competition arrangements from the definition of "non-compete."

• Exclude partnership, shareholder, and equity incentive agreements from any expanded policy scope.