Note to Transitioning Advisors: Next Time, Skip the Book Gift and the Video!
A Dallas state court judge was faced with an easy decision in issuing a TRO (injunction) against a former Morgan Stanley financial advisor who moved to Raymond James.
All the judge had to do was watch the video! The video, appearing on Raymond James' website page for the new advisor, went well beyond a (permissible) announcement of the advisors' move. It constituted a solicitation, in breach of numerous restrictions contained in the advisor's employment agreement.
Better yet, a short month before the advisor left the employ of Morgan Stanley, he devised a "clever" way to obtain his full client list with full contact information and the (never-to-be-taken) client account numbers. Feeling generous, the advisor decided to send each of his clients a book as a gift! How nice. But Morgan Stanley took a different view, categorizing it to the court as a breach of his duty of loyalty and an impermissible taking of confidential information. And it just looks cheesy too.
Financial advisors, and transition consultants, please consult competent securities counsel before transitioning to a new firm.