Morgan Stanley Launches “Voluntary” Dispute Resolution Systems with Many Pitfalls

Posted on September 29th, 2015 at 5:13 PM
Morgan Stanley Launches “Voluntary” Dispute Resolution Systems with Many Pitfalls

From the Desk of Jim Eccleston at Eccleston Law LLC:

Morgan Stanley is dusting off its voluntary dispute resolution forum, known as CARE (Convenient Access to Resolutions for Employees) for all its U.S. employees, including financial advisors.

Advisors can, and should, opt out of the program by completing some paperwork by October 2nd. Those employees who do not do so will consent to the program and waive their right to sue Morgan Stanley in court for statutory discrimination claims or as part of a class action.

According to Morgan Stanley, opting out of the CARE program will not adversely affect financial advisors ‘employment status with the firm. A "vast majority" of Morgan Stanley's top producing advisors already have been under the CARE program, a company source said, noting that it was a part of the retention deals signed by Smith Barney advisors who joined the firm as part of the 2009 merger. "This is not a new program," the source added.  

Maybe not, but here is nothing good or “caring” about Morgan Stanley’s CARE program. With Morgan Stanley’s move, other firms also may consider making their voluntary dispute resolution systems mandatory.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law,

Return to Archive

TESTIMONIALS

Previous
Next

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

July 26, 2024
Kentucky Advisor Sues LPL Financial for Alleged Corporate Raid

A Kentucky advisor, Mark Lamkin, has filed a lawsuit against LPL Financial, claiming the independent broker-dealer orchestrated a corporate raid that resulted in the loss of his firm’s entire book of managed assets.

July 25, 2024
FINRA Plans Fee Increases Amid Rising Costs and Losses

The Financial Industry Regulatory Authority (FINRA) has announced plans to raise fees for its approximately 3,300 broker-dealer member firms. According to AdvisorHub, the self-regulator faces soaring costs, as detailed in its annual report published at the end of June.

July 24, 2024
Raymond James Settles with Oregon Over Excessive Commissions

Raymond James recently settled a case with Oregon's Division of Financial Regulation (“DFR”), agreeing to pay nearly $200,000 over allegations of charging excessive commissions to retail investors.