Morgan Stanley’s Protocol Exit and Other Top Stories
Firm tells managers that as of Friday it will drop out of the Protocol for Broker Recruiting, opening the gates to potential litigation if people who leave contact clients within a year.
More veteran brokers jump-started their exits from the wirehouse in anticipation of the loss of protection from the Broker Protocol.
Former Merrill broker’s plan to plead guilty to overcharging customers, raises questions about commission accounts and how far firms and prosecutors may go to limit them.
Paul Murans, who owns Kentucky Derby thoroughbreds and reportedly produced around $2 million at a wirehouse, has moved to independent firm Thurston, Springer in Indianapolis.
Regulator gives broker seven-month time out for failing to fully disclose his involvement in outside betting companies.
Top comments of the week:
By Steve W. on Threat of Prison in Tom Buck Churning Case Alarms Brokers
I worked at ML for 8 years (2001 – 2009) and I’m surprised that the complex transactional revenue numbers in that Indiana complex were so high – at 70%. I wasn’t privy to my branch’s breakdown, but I’d say traditional commission revenue was probably down around 35%. The two highest producing teams in my office were probably 85% fee-based. Heck, my annuitized revenue was 50%. Buck’s sins were likely overlooked for a long while because his production was high. Trading without client authorization is – of course – a big no-no.
By Queen City on UPDATE: Morgan Stanley Brokers Jump Early Under Protocol Pressure
Negotiated a deal and had the handshake today to leave Merrill. We accelerated the discussion thinking that could be the next shoe to drop. Man am I relieved.
When will these firms realize that they are simply custodians of the assets while an advisor chooses to work with them. Just about every client I have ever worked with knows the relationship is with the advisor not the firm.