Morgan Stanley Roils Brokerage World by Exiting Accord
- Firm cites ‘gamesmanship and loopholes’ around the protocol
- Poaching between the biggest brokerages has already slowed
Morgan Stanley Quits Brokerage Industry Recruiting Pact
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Morgan Stanley, the world’s biggest brokerage by adviser count, has dropped out of an industry accord that allows financial advisers to defect to competitors without getting sued by their former employers.
The agreement, known as the Protocol for Broker Recruiting, has become “replete with opportunities for gamesmanship and loopholes,” Morgan Stanley said Monday in a statement. Member firms have joined and dropped out of the deal or changed its scope when it suited them, according to the New York-based bank.