Partner James Heavey was recently quoted in an article by InvestmentNews titled, “Morgan Stanley beats ex-Fla. advisors’ claims to deferred compensation.” The article centers on a recent case in which Morgan Stanley won a favorable arbitration decision against eight former brokers who were suing for deferred compensation that they claimed was protected by ERISA.
However, the article notes that in past similar cases faced by Morgan Stanley and other institutions, arbitration panels have also found in favor of the suing former advisors, lending an air of inconsistency and uncertainty to these types of disputes. Reflecting on this, James says:
“Just like with other issues before Finra arbitration panels, there are inconsistencies in decisions, and as a result the only thing that makes sense is if Finra or the Securities and Exchange Commission put out guidance on issues like this. Without clear rules or regulation, we’re going to continue to see inconsistent decisions from arbitration panels about deferred compensation.”
You can read the full article here.
James E. Heavey