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Morgan Stanley Owes Schwab, Ex-Advisors Millions, Panel Rules  

A Financial Industry Regulatory Authority arbitration panel has ordered Morgan Stanley to pay more than $7.8 million over its doomed 2019 hiring of two veteran advisors from Charles Schwab. So reports Advisor Hub.

Morgan Stanley2The three-person panel ruled that Morgan Stanley owes Charles Schwab $3 million in punitive damages, plus a total of $3.8 million in compensatory damages to the two advisors, along with $700,000 in attorney fees and $104,000 in litigation costs.

At the same time, the panel ordered Morgan Stanley and the two advisors jointly to pay Schwab $3 million in compensation plus more than $1.2 million in attorney fees and costs. That would represent a net payment of $1.89 million to the advisors, Christopher Robert Armstrong and Randall Brian Kiefner, whom Morgan Stanley fired within a month of their hiring.

Read the full article from Advisor Hub.

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