Do Wirehouses Punish Breakaway Brokers?
June 4, 2013
Last month Morgan Stanley began legal action against several "breakaway" brokers in Idaho. Are Wall Street firms sometimes vindictive when it comes to advisors who jump ship?
|Yes. They seek to make examples of some, at times arbitrarily, to keep others in place.|
|No. Big companies don't waste resources out of spite.|
|It's complicated. Big firms can be a little arbitrary about whom they pursue, but departing staffers sometimes commit infractions, like trying to leave with client information that doesn't belong to them.|