The U.S. Department of Labor has sided with Morgan Stanley and several FINRA arbitration decisions in a dispute over whether its deferred compensation program should be treated like a pension or a bonus and, if the latter, not be paid if a financial advisor leaves before the end of its vesting period.

In an opinion issued Tuesday, the DOL said Morgan Stanley’s deferred incentive compensation program “appears to be a bonus program,” so it qualifies for exemption under the Employee Retirement Income Security Act and is not considered an “employee pension benefit plan.” The regulator reviewed the compensation program on Morgan Stanley’s request. READ MORE