Genesys Wealth Advisers (Genesys) has won an injunction against its former managing director, Ray Miles.
The Supreme Court injunction restrains Miles from soliciting Genesys member firms until September 15, 2009.
Justice Palmer found in favour of Genesys’ claim that Miles had breached and proposed to continue to breach his ‘Deed of Release’, by attempting to lure existing Genesys advisers to his proposed new group.
Palmer also agreed with the former Challenger Financial Services-owned dealer group’s claim that prior to leaving Genesys in 2007, Miles had access to confidential documents.
“There could be no doubt that Mr Miles’ role in his new business is one in which he could cause severe detriment to the business of Genesys, were he able to use the confidential information contained in the documents given to him,” Palmer’s judgement said.
“Mr Miles is quite clearly the heart and mind of the new business. He is to draw up its business plan and it is an essential part of that plan that the new business prey upon the existing member forms of Genesys in the most effective way.”
According to documents filed in court, Miles and Suncorp Wealth Management were close to signing a memorandum of understanding over Miles’ proposed new dealer group.
Genesys began legal proceedings against Miles in June.
That same month, Challenger Financial Services sold Genesys to Axa in a multi-million dollar deal, a sale that included Genesys and Synergy Capital Management.
Challenger announced the sale of its advisory division for $150 million. In a separate transaction, Axa will transfer to Challenger its $1.3 billion Australian annuity portfolio.
