Morgan Stanley Nixes $5M Broker Award Over FINRA Conflict

Law360, New York (September 18, 2012, 6:09 PM EDT) -- A California state judge on Monday vacated a $5 million Financial Industry Regulatory Authority award against Morgan Stanley Smith Barney LLC in a dispute with two financial advisers over promised promotions because an arbitrator had failed to disclose a potential conflict of interest.

Judge Lisa C. Schall said arbitrator Barry E. Kersh, who sat on the FINRA panel that made the award in June, had failed to disclose that he had family connections to Morgan Stanley that might have prejudiced him against the company.

The financial...
To view the full article, register now.