Mindy Diamond Quoted – By Lisa Beilfuss, The Wall Street Journal – Two of Wall Street’s biggest firms have a message for their brokers: Leave at your own risk.
Howard Diamond Quoted – By John Aidan Byrne, New York Post – Morgan Stanley has locked the gates to keep its high-priced wealth management brokers from fleeing. The new edict — breaking with a 13-year-old agreement known as the Protocol for Broker Recruiting — enacted on Nov. 3 means the bank will threaten wealth management pros with costly litigation if they bolt for a rival brokerage.
Mindy Diamond Quoted – By Jeff Benjamin, InvestmentNews – A recent slowdown in the pace of reps leaving brokerage firms is seen as largely responsible for the sudden dip in merger and acquisition activity in the advisory space, according to the latest report from DeVoe & Co. The question now, is whether a wirehouse trend away from broker protocol will spark a fresh surge in breakaway activity.
Mindy Diamond Quoted – By Murray Coleman, Financial Advisor IQ – Despite reports indicating a bevy of Morgan Stanley advisors are jumping ship now that it’s breaking with industry protocol for handling employment moves, not everyone’s convinced such a policy reversal is behind any new uptick in recruiting activities. In fact, several wealth management headhunters say they doubt it’s even possible from an operational standpoint for newly-minted job changers to spin on a dime.
Mindy Diamond Quoted – By Greg Iacurci, InvestmentNews – Morgan Stanley dropped an industry bombshell this week upon announcing it would leave the broker protocol, a 13-year-old agreement that governs how financial advisers could leave one brokerage firm for another without getting in legal trouble. Mindy Diamond, president and CEO at recruiting firm Diamond Consultants, equates the agreement to a “mutual truce” — advisers who were part of signatory firms could leave without being sued if they followed certain rules, such as only taking a limited amount of client information.
By Mindy Diamond – The announcement of Morgan Stanley’s exit from the Broker Protocol as of November 3rd was just one more reminder that financial advisors are living in uncertain and tumultuous times. It’s become very clear that as an employee, the advisor is not steering the ship.
Mindy Diamond Quoted – By Andrew Welsch, OnWallStreet – Morgan Stanley is exiting the Broker Protocol. But even if threatened with potential lawsuits, advisors will still make career changes, recruiter Mindy Diamond contends. “Plenty of people moved pre-protocol, and they’ll move again,” she says.
Howard Diamond Quoted – By Bruce Kelly, InvestmentNews – Morgan Stanley’s decision to leave an industry agreement known as the protocol for broker recruiting is an indication that the firm is working harder than ever to prevent its brokers from jumping ship, industry sources said. One veteran adviser wondered whether a non-solicit agreement could be applied to existing accounts or only to new clients. “Would that be supported for accounts retroactively or newly opened,” asked the adviser, who requested to speak anonymously. He added that he had not seen anything in writing from the company about a new non-solicit agreement.
Louis Diamond Quoted – By Jed Horowitz and Mason Braswell, AdvisorHub – Morgan Stanley said Monday that it is dropping out of the Protocol for Broker Recruiting that large firms signed more than a decade ago, underscoring what it calls its “commitment” to spend money on retaining experienced brokers and training new ones rather than hiring them from rivals.
Timing of Morgan Stanley’s Broker Protocol withdrawal sends shocks through RIA legal and recruiting circles
Louis Diamond Quoted – By Brooke Southall, RIABiz – From Morgan Stanley’s perspective, Phil Shaffer never should have walked out the door with $4 billion to $5 billion of client assets and a whole team to staff his new RIA, Halite Partners LLC. The New York-based wirehouse wanted to keep the Barron’s-ranked super-producer for more than just his substantial assets and revenues. Shaffer was family, having co-founded the elite Graystone Consulting-branded unit inside Morgan Stanley.
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