Ex-Morgan Stanley Broker Fired Over Account Coding Issue Joined at LPL by Former Colleagues
A former Morgan Stanley broker fired last year over account coding issues has reunited with his team to launch an independent practice affiliated with LPL Financial’s Strategic Wealth Services channel for wirehouse breakaways.
The trio, who had managed $700 million in client assets at Morgan Stanley, are calling their new practice PBC Private Wealth, according to an announcement on Tuesday from LPL. They also have a second office in Las Vegas.
The three-broker team is the tenth to affiliate with LPL’s fledgling SWS model, which launched in April 2020.
LPL, the largest independent broker-dealer by its more than 17,000 reps, added the new structure to appeal to higher-end wirehouse teams who receive additional transition, marketing and business management support in exchange for a flat fee.
Prince and his fellow brokers did not return a call for comment Tuesday at their office. A spokeswoman for LPL did not respond to a request for comment on the recruitment and how it evaluated Prince’s termination.
Prince in a prepared statement had called LPL’s SWS model a “real differentiator,” specifically touting its help finding real estate for their branch and developing a brand and marketing tactics, as well as ongoing business consulting.
“We love having that large structure of support behind us so that we never feel alone,” Prince said.
Before he was fired, the 27-year industry veteran had been with Morgan Stanley since 1998, according to his BrokerCheck report. He had started his career in 1994 at PFS Investments and between 1997 and 1998 was registered for brief stints with Murphy, Marseilles, Smith & Nammick, Biltmore Securities and CIBC Oppenheimer.
Prince’s discharge from Morgan Stanley, which is the only ‘disclosure’ event on his record, was for allegedly submitting “transactions under production numbers that were inconsistent with agreement with another representative resulting in a shortfall of revenue credited to the other representative,” according to Morgan Stanley’s U5 notice.
Morgan Stanley has since updated its order entry systems to restrict brokers from switching production numbers on trades and provided additional training.
A spokeswoman for Morgan Stanley declined to comment on Prince’s termination or the team’s departure.
The shift comes as Morgan Stanley executives have in recent months touted a low competitive attrition rate of 2%, down from around 4% in 2015.
Bailin, a 34-year industry veteran, had joined Morgan Stanley’s Smith Barney predecessor Citigroup Global Markets in 1991, according to his BrokerCheck report. He began his career in 1987 with Bateman Eichler, Hill Richards, Inc. and in 1990 joined Kemper Securities Group for a brief stay.
Cohen, a 35-year veteran, worked at the same firms as Bailin from 1987 and onward, according to the database. She had started her career in 1985 with Bear, Stearns & Co.
Neither have any record of customer claims or disclosures on their BrokerCheck reports.