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Did Morgan Stanley Cause You Investment Losses?

Morgan Stanley submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority for allegedly failing to reasonably supervise a registered representative in violation of NASD Rule 3010 and FINRA Rules 3110 and 2010. Due to the misconduct, the firm was censured and fined $175,000.

Since 2009, Morgan Stanley has been a FINRA member firm and has more than 23,000 registered representatives. According to FINRA, between January 2012 through December 2017, Morgan Stanley had allegedly failed to supervise a representative who had been accused of  recommending unsuitable short-term trades and securities in 10 customers’ accounts. During the relevant period, Morgan Stanley had automated alerts set up to identify trading activity in accounts that needed to be reviewed by a supervisor and which accounts exceeded certain turnover and cost-to-equity ratios. The findings stated that the trading conducted in the customers’ accounts generated multiple red flags and Morgan Stanley allegedly failed to take reasonable steps to ensure the recommendations were suitable. As a result of the unsuitable trading, the customers suffered losses of more than $900,000 and Morgan Stanley was ordered to pay $774,574.08 in restitution.

FINRA Rule 3110 and its predecessor, NASD Rule 3010, require that each member firm take reasonable steps to ensure that the activities of each associated person comply with applicable securities laws and regulations, investigate red flags of potential misconduct, and take appropriate action when misconduct has occurred. A violation of FINRA Rule 3110 or NASD Rule 3010 also constitutes a violation of FINRA Rule 2010.

Do You Need a New York FINRA Securities Arbitration Attorney?

Are you a Purchase, New York investor who has suffered significant losses in your stock brokerage and investment accounts?  Did your New York stockbroker or investment advisor misrepresent facts, fail to disclose facts making the statements made false and misleading, recommend unsuitable investments or strategies, excessively trade or churn, mismanage your investment account or engage in other kinds of stockbroker misconduct? If so, you need representation by an experienced, highly-rated and nationally recognized FINRA securities arbitration attorney—a lawyer who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases as well as other complex legal issues. 

Free Initial Consultation With Experienced FINRA Securities Arbitration Lawyers Serving Purchase, New York Residents In FINRA Arbitration Proceedings

At The Law Offices of Robert Wayne Pearce, P.A.  we represent investors in all kinds of securities, commodities and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout New York, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.

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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities and investment law disputes serving New York citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail

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Robert Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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