Morgan Stanley Suing Broker Who Left For LPL Affiliate

Morgan Stanley wants to prevent Broker Brian Lynch from soliciting clients from the $1.2 billion team he left for LPL Financial affiliate Kathmere Capital Management. The company argued that the Broker Protocol doesn’t apply to Lynch in this case because Kathmere is not a signatory. LPL, however, is a signatory to the Broker Protocol, and Morgan Stanley’s theory that an affiliate is not covered under the circumstances is largely an untested one. The company’s lawyers also argued that because Lynch departed from a team, the Protocol’s protections allowing brokers to take client contact details don’t apply because Lynch is bound by the team partnership agreement. The company alleges that Lynch had agreed in that partnership agreement to take only contact information for the accounts on which he was a “designated joint producer.” More updates on this case to come…

Categories: Broker Protocol Blog