Leaving Morgan Stanley About To Get A Bit Easier


Morgan Stanley is joining the inter-brokerage pact set up by Merrill, Smith Barney and UBS Wealth Management USA two years ago in an effort to set out some rules for what client information brokers were and were not entitled to take with them when they left the firm. Before the pact, brokers frequently found themselves threatened with litigation from their former employers when they recruited old clients to their new firm. Now the brokerages who have signed on have agreed that brokers can take client names and contact information and solicit business from them, but are not permitted to take account details. It seems to be working—the sue-your-ex-broker litigation is down—which is sort of a shame. We kind of miss the days of brokers having to smuggle client information out in the dark of night. The new way seems so civilized.
Morgan Stanley to Sign Hiring Pact [Dow Jones Newswire in Houston Chronicle]