Morgan Stanley spokeswoman Margaret Draper declined to comment further about the firm’s motivations.
Observers are waiting to see if other firms will follow Morgan Stanley’s move.
Penney expects some will, and thinks more disputes will erupt over advisor moves.
“It’s interesting that [Morgan Stanley’s] spin is that they’re looking to lower costs, and make more investments on their platform, but being in the protocol isn’t expensive—being out could be more expensive with the legal bills,” he says.

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