The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

US wealth management: Ghost protocol

The spectre of collusion may not hang over the US wealth industry for much longer.

ghost-shadow-woods-250

Unless you are particularly interested in the US wealth management business, you probably missed one of the most extraordinary announcements of 2017 at the beginning of November. Extraordinary in that any bank was able to make it in the first place. 

Morgan Stanley broke ranks to announce its withdrawal from the Protocol for Broker Recruitment, which has been in place in the US brokerage industry since 2004. Originally established by a handful of firms, by 2017 a staggering 1,500 firms were signed up to it. Some banks, including JPMorgan, were often accused of having some business units signed up to the protocol and not others, thereby gaming the system.

The protocol was designed to put a stop to expensive lawsuits filed by brokers that had lost top advisers who took their roster of clients to rival firms. In return, those advisers would agree not to solicit other clients from their old shop to join their new firm unless it was compensated for the loss of business.

Yes, that’s right.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree