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. 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 Smith Barney LLC is the broker-dealer and investment adviser behind Morgan Stanley Wealth Management, offering brokerage and advisory services, financial planning, lending, cash management, annuities, insurance, and retirement and trust services to individuals, businesses, and institutions. The firm took shape in 2009 when Morgan Stanley’s wealth business combined with Citigroup’s Smith Barney, and Morgan Stanley became its full owner in 2013.
Morgan Stanley – By the Numbers:
- CRD #: 149777
- Regulatory Events: 66
- Arbitration Events: 117
- Broker Employees: 25,985
Morgan Stanley – Investment Advisors:
- SEC #: 70103
- Assets Under Management: $1,961,887,313,229
- ADV Form Employee: 29,481
Morgan Stanley – In the News:
FINRA v. Morgan Stanley (Case #2021069319401) – From May 2018 through July 2022, Morgan Stanley provided written trade confirmations to non-institutional customers that did not accurately disclose or did not disclose at all the firm’s mark-ups and mark-downs for approximately 19,000 municipal securities and corporate debt transactions. In addition, the firm did not disclose the time of execution, and/or a security-specific URL (providing a hyperlink to a FINRA or MSRB-hosted web page with publicly available trading data for the security), for approximately 35,000 fixed price, primary market transactions involving municipal securities and approximately 500,000 fixed price primary market transactions involving corporate or agency debt securities. As a result, Morgan Stanley violated MSRB Rule G-15 (with respect to the municipal securities transactions) and FINRA Rules 2232 and 2010 (with respect to the corporate or agency debt transactions). Additionally, Morgan Stanley did not establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with MSRB Rule G-15 and FINRA Rule 2232. As a result, Morgan Stanley violated MSRB Rule G-27 and FINRA Rules 3110(a) and 2010.
FINRA v. Morgan Stanley (Case #2020065102001) – From December 2016 through August 2021, Morgan Stanley violated MSRB Rule G-12(h) by failing to cancel or close out 239 failed inter-dealer municipal securities transactions totaling approximately $9 million within 20 calendar days after settlement date. Additionally, from January 2016 through August 2021, Morgan Stanley violated Section 15(c)(3) of the Securities Exchange Act of 1934, Exchange Act Rule 15c3-3(d)(2), and FINRA Rule 2010, by failing to take prompt steps to obtain physical possession or control of 247 short positions in municipal securities totaling approximately $9.4 million resulting from failed inter-dealer municipal securities transactions. From January 2016 through September 2021, Morgan Stanley also violated MSRB Rule G-27 by failing to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with: (1) the timely close-out requirements under MSRB Rule G-12(h) relating to failed inter-dealer municipal securities transactions; and (2) the requirement under Exchange Act Rule 15c3-3(d)(2) that the firm take prompt steps to obtain physical possession or control of municipal securities aged more than 30 calendar days that the firm failed to receive.
FINRA v. Morgan Stanley (Case #2023077632501) – From August 2020 to October 2022, Morgan Stanley failed to deliver prospectuses to customers electing paper delivery in connection with 166,104 sales of 65 Exchange Traded Funds (ETFs). As a result, the firm violated FINRA Rule 2010 by acting in contravention of Section 5(b)(2) of the Securities Act of 1933. In addition, Morgan Stanley failed to establish and maintain a supervisory system reasonably designed to monitor and confirm the delivery of prospectuses to customers, in violation of FINRA Rules 3110 and 2010.
FINRA v. Morgan Stanley (Case #2021069495301) – Between January 2015 and December 2021, Morgan Stanley’s supervisory system did not provide certain customers with mutual fund sales charge waivers and fee rebates to which they were entitled through rights of reinstatement offered by mutual fund companies. Consequently, eligible customers across more than 2,000 accounts paid approximately $802,000 in excess sales charges and fees during that period. Therefore, Morgan Stanley violated FINRA Rules 3110 and 2010. As described below, FINRA credits Morgan Stanley for its extraordinary cooperation in this matter. Accordingly, this AWC includes an order for restitution plus interest and censure, but no fine.
FINRA v. Morgan Stanley (Case #2016051634802) – From January 2014 through December 2018, Morgan Stanley failed to reasonably supervise nine registered representatives who recommended potentially high-risk securities to their customers in violation of the firm’s Plan of Solicitation policy. As a result, the firm violated NASD Rule 3010, FINRA Rule 3110, and FINRA Rule 2010.
Gana Weinstein LLP has successfully litigated broker disputes through verdict or settlement. We represent both individuals and institutions throughout the country in FINRA arbitration, as well as commercial litigation in state and federal courts. Our consultations are both free and thorough and our securities litigation attorneys can help you uncover wrongful activity in your account.