Morgan Stanley Managing Director in Connecticut Jumps to JPMorgan
In what may be the most direct challenge to date to Morgan Stanley’s departure from the Protocol for Broker Recruiting, a managing director in its Greenwich, Conn., office with 23 years of industry experience joined J.P. Morgan Securities on Friday.
The move by John W. Slattery, whose title indicates that he generates several millions of dollars a year, was confirmed by a Morgan Stanley spokeswoman, who declined to say whether the company will challenge his move in court and arbitration.
The Protocol permits brokers to move among signatory firms with confidence that they can contact former customers without legal retribution from their former employers. Since its exit from the pact in November, Morgan Stanley has successfully convinced four federal judges across the U.S. to issue temporary restraining orders preventing brokers from contacting customers on the theory that they were using the firm’s confidential information, but lost a similar attempt last week in a county court in Texas involving a team who went to Ameriprise.
The successful cases involved relatively inexperienced advisors who moved to smaller firms, causing lawyers and recruiters to say that it was still too early to say how effective Morgan Stanley’s Protocol decision has been in keeping large producers from leaving for large competitors.
A J.P. Morgan spokeswoman confirmed that the broker-dealer hired Slattery in its White Plains, N.Y. office near Greenwich but declined to say whether the firm was preparing to defend its new advisor. A person answering the phone at Slattery’s J.P. Morgan office said he was not available to comment.
J.P. Morgan Securities, whose broker-dealer offices were seeded by its financial crisis purchase of Bear Stearns Securities, landed several large teams from Morgan Stanley and UBS Financial Services in the days just before those firms left the Broker Protocol.
Morgan Stanley awards the managing director title to brokers who generated at least $8.8 million of fees and commissions over the previous three years, according to the firm’s current compensation plan, though it is unclear if Slattery earned the title under less stringent criterion. He began his brokerage career at Merrill Lynch with a seven-year stint, spent the following six-and-a-half years at UBS Financial Services from 2002 through late 2008, and joined Smith Barney that year shortly before before its absorption into Morgan Stanley.
Slattery gained local notoriety in April 2016 when he was arrested for allegedly threatening a woman in a parking garage in Connecticut who he said had cut off his Range Rover on a local highway. His BrokerCheck records no disclosure events over the course of his 23-year career, and his lawyer in the alleged road-rage case declined to comment on how it was resolved.