Corporate & Securities Law

Morgan Stanley Smith Barney, the largest brokerage firm in the industry, recently cut 300 of its trainees and low producing advisers in an effort to improve the overall productivity of its sales force. 

The general guidelines for the advisers that were terminated were advisers who had at least one year with the firm and production of less than $75,000 or trainees who had been with the firm for less than 36 months with under $25,000 in annual production. 

Recruiters believe that there will be more departures of Morgan Stanley advisers in 2011, particularly among those advisers who came on board from the Smith Barney acquisition. Regional firms have already expressed interest in those Morgan Stanley advisers who are recently departed.

Advisers are cautioned that wirehouse firms such as Morgan Stanley have been aggressively pursuing advisers for monies owed on promissory note or training cost agreements. Wirehouses are committed to collecting these outstanding debts through FINRA arbitration proceedings.  Former Morgan Stanley advisers should be aware of their obligations under any outstanding promissory note or training cost agreement and seek counsel to discuss their options.

The experienced securities attorneys at Eccleston Law stand ready to assist and defend, by asserting all available legal and equitable defenses (as well as any counterclaims, if appropriate).  If you are a former Morgan Stanley adviser being pursued on a promissory note claim, or have more information regarding Morgan Stanley?s collection efforts, please contact Jim Eccleston at Eccleston Law Offices at 312-332-0000.