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 learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).