Three Firms Agree To Protocol for Broker Departures

Merrill Lynch, Citigroup and UBS have agreed that it's time to stop fighting, at least among themselves when reps leave for one of the other two firms and attempt to bring their customers with them.

The new protocol will avoid the uncertainty and the litigation costs in pursuing claims for breach of confidentiality and injunctions. Now, the customer's completed and signed ACAT form will require the firm to transfer the account.

Morgan Stanley, Wachovia and other firms have been invited to join the pact, and some of the firms are in the process of determining whether to do so.

Source: Wall Street Journal, August 10, 2004