Morgan Stanley terminated 10 advisors following a review of the firm's Former Advisor Program ("FAP"), a program which facilitates the transfer of books of business from retiring advisors to younger advisors. As reported by AdvisorHub, the advisor terminations took place following a nationwide internal investigation of this program. According to AdvisorHub, the investigation was instigated following a complaint of underpayment from a retired advisor who used the FAP.

Under Morgan Stanley's Former Advisor Program, retiring brokers split fees and commissions with younger advisors for several years if the brokers let their practice lapse after they leave the firm, according to AdvisorHub. However, some Morgan Stanley advisors who participated in the FAP recorded commissions under their individual production number instead of their joint production number, as required by the FAP agreement, AdvisorHub reported. In an email reported by AdvisorHub, a Morgan Stanley spokeswoman said that the firm is "committed to ensuring that retiring Advisors receive what they are entitled to[.]"

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