A FINRA Panel Grants Morgan Stanley’s Request for a Permanent Injunction Preventing Former Reps From Soliciting Clients

Posted on July 14th, 2017 at 10:00 AM
A FINRA Panel Grants Morgan Stanley’s Request for a Permanent Injunction Preventing Former Reps From Soliciting Clients

From the Desk of Jim Eccleston at Eccleston Law LLC:

A three-person FINRA arbitration panel has granted Morgan Stanley’s request for a permanent injunction prohibiting a pair of former reps from soliciting clients from their new Janney Montgomery Scott office in Mystic, Connecticut until April 30, 2019.

According to the complaint, Morgan Stanley argued that the reps’ solicitations violated a “Former Financial Advisor Program” document signed in 2014 when they assumed accounts from another rep who was retiring. The “Former Financial Advisor Program” document protects Morgan Stanley from continuing to receive payouts on accounts only so long as they continue their business relationship with Morgan Stanley.

The FINRA panel’s decision was important because it demonstrated that side agreements sometimes can trump the protections of the Broker Protocol, which allow reps to take certain client information with them when they move to another signatory Protocol firm. It therefore is critical for reps to retain qualified securities counsel well in advance of any transition to ensure it goes smoothly.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.


Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Morgan Stanley, FINRA

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I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.


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