Big brokerage comes to terms in its second gender-basis suit in three years. Morgan Stanley's Global Wealth Management Group says it has settled a class-action lawsuit and will adopt new programs that will encourage the success of its female financial advisors.

Under the terms of the settlement, women advisors who were "historically disadvantaged" can apply for monetary compensation. Morgan Stanley has established a fund of $46 million to pay these compensations.

The U.S. District Court in Washington, D.C., still has to approve the settlement.

New leaf

"We are firmly committed to the initiatives we will be undertaking to attract and retain women financial advisors and help them be as successful as possible, and pleased to resolve a legal matter stemming from the past," says Caroline Gundeck, head of the wealth-management group's Office of Diversity. "Our goal across the organization is to be the employer of choice for talented women."

The suit was filed in June 2006 by six former Morgan Stanley female brokers. The class includes about 2,700 claimants who worked at the firm's retail brokerage division between 5 August 2003 and the present. Morgan Stanley now employs about 8,000 brokers.

In 2004 Morgan Stanley agreed to pay $54 million to settle another gender-bias suit filed on behalf of hundreds of female employees.

Late last year former Morgan Stanley wealth-group managing director Edward Sullivan brought suit against the company for, he claims, ousting him in 2006 because of his age. He's asking to be re-instated and to receive around $30 million in punitive damages and to make up for lost compensation.

Morgan Stanley Global Wealth Management Group has about $690 billion in client assets. -FWR

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