April 19, 2023

VIA ELECTRONIC SUBMMISSION (www.regulations.gov/)

April Tabor
Secretary
Federal Trade Commission
600 Pennsylvania Avenue, NW
Suite CC-5610 (Annex C)
Washington, DC 20580

Re: Notice of Proposed Rulemaking, Federal Trade Commission; Non-Compete Clause Rule; 88 Fed. Reg. 3482 (RIN: 3084-AB74) (January 19, 2023).

Dear Ms. Tabor:

The Securities Industry and Financial Markets Association1 (“SIFMA”), jointly with its Asset Management Group2 (“SIFMA AMG”), appreciates the opportunity to comment on the Federal Trade Commission’s proposed near-total ban of worker non-compete clauses (the “Proposed Rule”).3 The Proposed Rule seeks to (a) prohibit an employer from entering into or attempting to enter into a non-compete clause, defined to include “de facto” non-compete clauses, with a worker, to (b) maintain with a worker a non-compete clause, or (c) under certain circumstances, represent to a worker that the worker is subject to a non-compete clause. The Proposed Rule would also require employers to rescind existing non-compete clauses and provide notice to workers that their non-compete clauses are no longer in effect.

We oppose the Proposed Rule and urge the Commission not to promulgate it. If the Commission decides to proceed, it should modify the final rule to mitigate its adverse consequences.

 

1 SIFMA is the leading trade association for broker-dealers, investment banks, and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million workers, we advocate on legislation, regulation, and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the US regional member of the Global Financial Markets Association (GFMA).

2 SIFMA’s Asset Management Group (SIFMA AMG) brings the asset management community together to provide views on U.S. and global policy and to create industry best practices. SIFMA AMG’s members represent U.S. and global asset management firms whose combined assets under management exceed $45 trillion. The clients of SIFMA AMG member firms include, among others, tens of millions of individual investors, registered investment companies, endowments, public and private pension funds, UCITS and private funds such as hedge funds and private equity funds.

3 Non-Compete Clause Rule, 88 Fed. Reg. 3482, 3535–35 (proposed Jan. 19, 2023) (to be codified at 16 C.F.R. pt. 910).