Morgan Stanley

Wells Fargo, Morgan Stanley, Bank of America and J.P. Morgan Chase were among the dissenters, people familiar with the matter said.

The SEC found that auditing or testing would likely have revealed deficiencies in controls that allowed an employee access to client information at the wirehouse, says leading compliance expert Alan Foxman.

An arbitration panel ruled that the firm had failed to properly supervise the adviser.

Also, J.P. Morgan saw a team managing $300 million in client assets go independent.

The wirehouse's latest hires will support client development and strengthen product delivery, according to Morgan Stanley.

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

The branch is staffed by 22 advisers, most of whom are recent recruits from Credit Suisse.

The regulator cited security oversights that led to the theft of thousands of customer accounts.

The firm's newest recruit is a veteran broker from Morgan Stanley.

The new recruits joined the wirehouse from Merrill Lynch and UBS.

Yet that wasn't Merrill's only recruiting success, as the wirehouse also picked up a team overseeing more than $500 million in client assets.

The case centered on the supervision of a now-barred broker, whose misconduct included encouraging athletes to invest in a Miami Beach nightclub and sending baskets of tequila to pro sports teams, according to FINRA.

The recruits made the move between wirehouses with two client associates.

The head of the advisory group also was returning to where his career started.

The new recruits are industry veterans who oversaw more than $330 million in client assets.

The firm's newest recruits generated $3.5 million in annual revenue.

The firm's newest hire was an ex-Morgan Stanley complex manager.

The wirehouse terminated the broker two days after losing a $34 million arbitration case brought by the client's widow, who alleged elder abuse and other misconduct.

The recruit made more than $1 million in production before making the move, according to the regional broker-dealer.

Earnings have been soft for the industry's biggest brokerages, but lending has helped bolster performance.