Michael Crotty, who joined Morgan Stanley’s Smith Barney predecessor in 2007 and moved to rival UBS earlier this month, agreed to Morgan Stanley’s bid to block him from reaching out to customers governed by teaming agreements.
The industry’s self regulator issued a three-month suspension and $5,000 fine against a former Morgan Stanley broker who allegedly did not receive approval for a fund-raising endeavour.
The three-broker Los Angeles-based team, which had managed $700 million in client assets, has reassembled at LPL Financial’s fledgling channel for wirehouse breakaways.
The complaining client had $20 million in investable assets and had been given “no less than nine different investment proposals,” an arbitrator wrote in the award letter.
Advisor-led client assets increased 6% from the prior quarter and 38% from the year-ago quarter to $3.5 trillion, according to the bank.
Mike Crotty, who had joined Morgan Stanley’s Smith Barney predecessor in 2007, moved to rival UBS last week, but not before giving some clients a heads-up he was leaving, the wirehouse claims in a suit.
“I like this—working from home in shorts and a t-shirt,” a veteran Merrill broker said.
Father-daughter duo moving to Morgan Stanley in Dallas had been overseeing around $200 million, while Sanctuary team managed $1.2 billion in assets.
The Washington D.C.-based broker had been with Merrill for all of his 27-year career and had co-led a 12-person team said to manage around $950 million.