This recent FAIQ article discusses a legal dispute between JPMorgan and a former employee, James Vallery, who joined Morgan Stanley after leaving JPMorgan. JPMorgan alleges that Vallery breached a one-year non-solicitation agreement and misused confidential client information to convince clients to follow him to Morgan Stanley. Proof that it doesn't take much to trigger legal action, Vallery is accused of soliciting about 13 JPMorgan clients (he managed 379 accounts at JPM), representing around $20 million in assets (out of his $220m book at JPM).
JPMorgan also claims that Vallery misrepresented the bank's advisory offerings and disparaged the advisor who took over his accounts. JPMorgan is seeking a temporary restraining order enforcing the terms of Vallery's non-solicitation agreement.
This case highlights the importance of brokers and advisors who are leaving their current firms seeking specialized legal counsel to assist them in their move. Having expert guidance available to pre-plan and advise you during the move can substantially reduce the risk of potential legal disputes, will help protect client relationships, and ensure a smoother transition between firms. It is the cheapest form of business insurance brokers and advisors can buy - providing peace of mind and reducing the risk of costly litigation.
https://www.financialadvisoriq.com/c/4032594/517354/jpmorgan_seeks_against_advisor_fled_morgan_stanley
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