Morgan Stanley Wealth Management

The case is the latest related to alleged misconduct by a barred wirehouse broker who was also a nightclub owner.

The advisers, one of whom is a former football coach, are among the first to join the wirehouse since UBS unveiled sweeping changes to its comp plan.

The lawsuit highlights a friction that exists at financial-services firms that put employees into their own product.

ValueAct likes Morgan Stanley’s shift to asset-light, fee-based businesses such as wealth and investment management, and said CEO James Gorman has shifted the bank to “growing fee streams that do not require much equity capital to grow.”

Two veteran advisers opened a new office for the firm.

FINRA arbitrators hit the brokerage giants with the penalty for failing to catch a husband moving funds from his spouse's account.

"We are not going to have a separate robo adviser that would disintermediate our existing advisers," says CEO Paul Reilly.

Executives say it's about more than just robos.

Wealth management firms need to acquire their own robo platforms because digital startups represent a real threat with "a long runway for growth," the analyst says.

The new recruits are opening a new office for the independent firm.