Broker Protocol Blog

Articles related to The Broker Protocol

16
May
2016

Morgan Stanley Suing Broker Who Left For LPL Affiliate

Morgan Stanley wants to prevent Broker Brian Lynch from soliciting clients from the $1.2 billion team he left for LPL Financial affiliate Kathmere Capital Management. The company argued that the Broker Protocol doesn’t apply to Lynch in this case because Kathmere is not a signatory. LPL, however, is a signatory to the Broker Protocol, and Morgan Stanley’s theory that an affiliate is not covered under the circumstances is largely an untested one. The company’s lawyers also argued that because Lynch departed from a team, the Protocol’s protections allowing brokers to take client contact details don’t apply because Lynch is bound by the team partnership agreement. The company alleges that Lynch had agreed in that partnership agreement to take only contact information for the accounts on which he was a “designated joint producer.” More updates on this case to come…

Categories: Broker Protocol Blog

31
October
2016

Indiana Advisors Awarded $1.5m for Protocol Misrepresentations

A recent FINRA case, NRP Financial, Inc. v. Walker Bafs Retirement Group, et. al., demonstrated the serious risk firms face in “following” the Protocol without in fact joining the Protocol. In that case, Claimants initially lured Respondents to leave Morgan Stanley, in part by representing that Claimant NRP Financial was a member of the Protocol, and thus that Respondents would be able to move client information regarding Respondents’ former Morgan Stanley pension clients to NRP freely. By the time that Respondents found out that NRP was not in fact a member of the Protocol, Respondents Walker and Bafs alleged that they were forced to abandon almost all of their client base at Merrill Lynch. Ultimately, Respondents Walker and Bafs were awarded more than $1.5 million in compensatory damages and attorneys’ fees.  

Categories: Broker Protocol Blog