Securities Lawyers Blog
The law offices of Gana Weinstein LLP represents investors in investment disputes with their financial advisors or brokerage firms, such as Morgan Stanley & Co. LLC. Many investors do not recognize financial advisor misconduct when it happens, but there are steps that can be taken to recover investment losses. There are many different types of broker misconduct, including breach of fiduciary duty, failure to supervise, misrepresentation, and churning. The attorneys at Gana Weinstein LLP can analyze your investments to determine if there was actionable misconduct by the broker or brokerage firm.
Morgan Stanley & Co. LLC is the institutional securities broker-dealer of Morgan Stanley, providing securities underwriting, advice on mergers, acquisitions, and restructurings, sales, trading, and market making in equities and fixed income, and prime brokerage services. The firm serves a large and diversified group of corporations, governments, and financial institutions and is also registered as a futures commission merchant and swap dealer.
Morgan Stanley & Co. LLC – By the Numbers:
- CRD #: 8209
- Regulatory Events: 491
- Arbitration Events: 56
- Broker Employees: 3,809
Morgan Stanley & Co. LLC – In the News:
FINRA v. Morgan Stanley & Co. LLC (Case #2021069330101) – From August 2019 through June 2023, Morgan Stanley failed to establish, document, and maintain a system of risk management controls and supervisory procedures reasonably designed to manage the financial risks of its market access business activity, including controls designed to prevent the entry of erroneous orders, in violation of Section 15(c)(3) of the Exchange Act, Exchange Act Rules 15c3-5(b) and 15c3-5(c)(1)(ii), and FINRA Rules 3110(a) and (b), and 2010. From August 2019 through June 2023, the firm failed to conduct reasonable reviews of the effectiveness of certain of its market access controls and supervisory procedures, in violation of Exchange Act Rule 15c3-5(e)(1) and FINRA Rule 2010.
FINRA v. Morgan Stanley & Co. LLC (Case #2018056929901) – Between July 2017 and March 2021, Morgan Stanley & Co. LLC violated FINRA Rules 5190 and 2010 by filing inaccurate, filing untimely, or failing to file approximately 205 required notifications to FINRA in connection with its participation in distributions of securities. Morgan Stanley & Co. LLC also violated FINRA Rules 3110 and 2010 by failing to establish and maintain a system to supervise, including written supervisory procedures, reasonably designed to achieve compliance with FINRA’s Regulation M related notification rules. Morgan Stanley & Co. LLC consents to a censure, and a fine of $120,298 (resolved simultaneously with similar matters for a total fine of $500,000).
FINRA v. Morgan Stanley & Co. LLC (Case #2019061500001) – Between August 2017 and May 2019, Morgan Stanley reported approximately 9.6 million transactions in National Market System (NMS) securities without a required short sale indicator in violation of FINRA Rules 6182 and 2010. Between November 2014 and June 2019, the firm reported 2,240 transactions in Over the Counter (OTC) equity securities without the required short sale indicator in violation of FINRA Rules 6624 and 2010. Additionally, between November 2014 and June 2019, Morgan Stanley failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with FINRA Rules 6182 and 6624 in violation of NASD Rule 3010 and FINRA Rules 3110 and 2010.
FINRA v. Morgan Stanley & Co. LLC (Case #2020067484501) – Between August 30, 2019, and February 28, 2020, Morgan Stanley published approximately 11,000 equity research reports that included price charts with inaccurate historical stock ratings. As a result, the firm violated FINRA Rules 2241(c)(3) and 2010. These errors resulted, in part, from the firm’s failure to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA Rule 2241(c)(3). As a result, the firm violated FINRA Rules 3110(a) and (b)(1) and 2010. In addition, between April 7 and May 17, 2021, the firm failed to accurately disclose required beneficial ownership information in 1,616 equity research reports. As a result, the firm violated FINRA Rules 2241(c)(4)(F) and 2010.
FINRA v. Morgan Stanley & Co. LLC (Case #2020067153801) – Between April 2018 and January 2021, Morgan Stanley deleted approximately 28,109 expiring OTC option positions from its reports to the LOPR, in violation of FINRA Rules 2360(b)(5) and 2010. In addition, between April 2018 and January 2021, Morgan Stanley failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), that was reasonably designed to comply with its LOPR reporting obligations, in violation of FINRA Rules 3110 and 2010.
Gana Weinstein LLP has successfully handled hundreds of customer investment disputes with their brokerage firms. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free and we welcome all inquiries.