The advisors, David and Phillip Middleton had been involved in financial planning in South Australia and have also been at Prescott through various ownership changes.

As a part of the deal, the duo has agreed not to accept business from certain Prescott clients before late March 2012.

The Middletons had set up Middleton Securities in March 2012 after having been sacked by Prescott Securities in mid-February and a Federal Court dispute about their right to compete had followed.

"Whilst it is regrettable that not all of our former clients will have the opportunity to choose to retain us, the restraint period that we have to work to is of limited duration and ultimately those clients will have the right to choose their adviser," adelaidenow quoted Middleton as saying.

While Prescott is owned by Melbourne-based WHK group, Middleton has set up their office in Parkside with nine staff.