FINRA Arbitration Panel Orders Credit Suisse to Pay Former Advisor More Than $844,000 in Deferred Compensation

Posted on October 30th, 2018 at 4:30 PM
FINRA Arbitration Panel Orders Credit Suisse to Pay Former Advisor More Than $844,000 in Deferred Compensation

From the Desk of Jim Eccleston at Eccleston Law LLC:

A FINRA arbitration panel has ordered Credit Suisse to pay an advisor more than $844,000 in unpaid deferred compensation accruing until 2015 when the firm shuttered its U.S. wealth management unit.  

Credit Suisse had signed an exclusive recruiting arrangement with Wells Fargo. Under the deal, Credit Suisse advisors were allowed to move their practice to Wells Fargo and still be able to maintain their rights to any unvested deferred compensation. However, under the deal, if a Credit Suisse advisor chose not to move to Wells Fargo and instead joined a competitor, his or her deferred compensation would be forfeited.

In this particular arbitration case, the advisor did not join Wells Fargo and instead joined Morgan Stanley immediately after Credit Suisse halted its wealth management practice. The advisor filed an arbitration claim against Credit Suisse to collect unpaid deferred compensation owed to him.

In its decision, the arbitration panel sided with the advisor and ordered the explanation for termination on his Form U5 changed to “terminated without cause.” Moreover, by changing the advisor’s Form U5 to reflect that he was terminated without cause, the advisor’s deferred compensation then would automatically vest.

The arbitration panel explained in its decision that, despite providing the advisor with an option to go to Wells Fargo, Credit Suisse breached its contract and was unjustly enriched for keeping the advisor’s deferred compensation.

The attorneys at Eccleston Law file unpaid wages, bonuses, and commissions lawsuits for advisors nationwide. Please call us at 312.332.0000 for a free consultation.

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 investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, 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: james eccleston, eccleston law, eccleston law llc, eccleston, finra, credit suisse, deferred compensation

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Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


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