The private client advisory arm of Australia’s Goldman Sachs JB Were has been criticised by an Australian Federal Court judge who is hearing...

The private client advisory arm of Australia’s Goldman Sachs JB Were has been criticised by an Australian Federal Court judge who is hearing a case for unlawful dismissal brought by an investment advisor, formerly employed by the bank. The judge described the structure of the private client division's partnership system, in which advisors work in teams and share clients, as inherently problematic. He said he was "not surprising that it created difficulties" when clients were reallocated between advisors. The former advisor, Peter Nikolich, claims that Canberra branch manager Rod Sutherland improperly reallocated hundreds of the firm's blue-chip clients after a colleague left the bank in 2003. Mr Nikolich, claims that he missed out on six-figure commissions when Mr Sutherland divided the client list between seven of the branch's nine advisors, including himself. According to Mr Nikolich, Mr Sutherland also became abusive after Mr Nikolich complained to management. The plaintiff asserted that the firm failed to act swiftly to resolve the staff dispute, which arose amid intense competition for commissions for advising the richest of the firm’s high net worth investors. The firm's delay in addressing the problems, which began in mid-2003, led to Mr Nikolich being depressed and lengthy sick leave. By March 2004, Mr Nikolich claims, he was suicidal and told human resources staff he was "off his rocker" and felt isolated by the firm. He was sacked nine months later. The bank denies the claims.