Staff poaching spat results in award of $33m

Dollars

The cost of hire has just gone up.

Inter-dealer Tullett Prebon has been awarded $33m in damages after rival BGC Partners poached more than 80 brokers from its US operation.

The Daily Telegraph reports that in the latest ruling linked to a long-running spat over the poaching of key staff between the two inter-dealers – whose role is to act as middle men between investment banks - a US regulator has found in favour of London-listed Tullett.

The Financial Industry Regulatory Authority (Finra) Arbitration Panel found that BGC, which is listed on New York’s Nasdaq exchange, is solely liable to pay $13m in relation to the poaching, which took place in the second half of 2009.

In addition, certain senior BGC staff were found liable for a total of $20m, however BGC said it expects to cover this amount.

The arbitrator also found that Tullett, run by chief executive Terry Smith, should itself pay $6.1m to former shareholders in Chapdelaine Corporate Securities, many of whom now work at BGC.

To access the complete Daily Telegraph article hit the link below:

Tullett Prebon wins $33m in damages from rival BGC

Insider trading has plummeted since the financial crisis. Here's why

Bank Workers CharityBank Workers Charity - Supporting bank workers

Register for Financial Markets News Alerts