Morgan Stanley Seeks Injunction Against Former Broker Who Left For Raymond James

In an effort to thwart the Protocol, Morgan Stanley Smith Barney LLC (“Morgan Stanley”) filed suit against an advisor who did not comply with the requirements of the Protocol.  First, the rep allegedly altered his clients’ telephone numbers in the company’s computer database on the afternoon before he abruptly resigned.  Second, the advisor resigned without giving notice on October 25, 2013.  On that afternoon, the advisor altered 206 telephone numbers belonging to 156 accounts in the Morgan Stanley computer database.  These clients were reassigned to four other financial advisors in the office; however, the advisors were unable to reach the clients by telephone.

Morgan Stanley is seeking a temporary injunction which would bar the advisor from soliciting the clients in his new position with Raymond James Financial Services Inc. (“Raymond James”).  Moreover, Morgan Stanley has also filed an arbitration request against the advisor before FINRA.  Without the protections of the Protocol, Morgan Stanley argues that the advisor’s actions violate the employee agreement he signed when he joined Morgan Stanley, which stated that he would not take any client information with him, and that he would not solicit any Morgan Stanley clients that he served for one year after leaving.

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