Advisors Leaving Morgan Stanley for Another Firm can’t Solicit Clients, but Clients can Ask to Join Their Advisor at the New Firm.
- On November 8, 2017
Morgan Stanley has withdrawn from Broker Protocol (with the effective date of November 3rd, 2017) which is a peace treaty of sorts between over 1600 firms, allowing for an “investor client friendly” way for advisors who move to a different firm the ability to contact their clients and ask them to join them at their new firm.
Morgan Stanley states on October 30th, 2017: “The provisions of Protocol that permit Advisors to take certain client data and solicit clients when transitioning from one Protocol firm to another no longer apply.”
Morgan Stanley loses hundreds of advisors every year. Instead of trying to provide a better environment for their advisors to curb attrition, they have selected instead to exit Protocol and try to drive a wedge between a leaving advisor and their clients.
What this means for departing Morgan Stanley Advisors
You can talk to your clients and tell them where you went but you can’t solicit them, you can’t ask them to join you at your new firm during the one year non-solicit term. When you speak with your clients and they share they want to keep you as their advisor that’s fine. Clients can of course work with whoever they want.
When you leave Morgan Stanley, your former branch manager will divvy up your clients you have built a career nurturing, and pass them out to other advisors, your former co-workers, to call your clients and try to keep your clients at Morgan Stanley. This has always been the way, but for the last 13 years you would also be calling your clients to ask them to join you and stay with you. Now, you can’t ask them to join you, they must initiate the topic and ask to join you.
Clients whose Advisor left Morgan Stanley can follow their trusted advisor to their new firm.
The Client just needs to initiate that conversation.
In other words, former Morgan Stanley Advisors can’t solicit their clients but their clients can “solicit” them.
Posted by Darin Manis
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