Coral Gables, FL (Vocus) October 31, 2009
The Law Firm of Tramont Guerra & Nunez, PA (TGN) announces the recent filing of a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), Case No. 09-05888, against Morgan Stanley & Company, Inc. (Morgan Stanley). During the financial banking system collapse, the couple’s retirement portfolio declined in excess of $1.8 million. The arbitration claim filed by a retired couple alleges sales practice violations, including unsuitable allocation of retirement assets, inadequate due diligence and supervision of account administration and money manager selection. The claim alleges that Morgan Stanley recommended that the couple participate in Initial Public Offerings, underwritten by Morgan Stanley. Additionally, the claim alleges there was a system of compensation that provided incentives for Financial Advisors to solicit investments underwritten by Morgan Stanley. The claim concludes these recommendations resulted in an unsuitable allocation of retirement funds and securities concentration in the financial sector held in fee-based accounts.
The FINRA sales practice rules and regulations are promulgated through member firm internal compliance procedures that are established to protect investors from investment losses that are the direct result of the violation of these rules. In this instance, Claimants did not understand the risks associated with securities concentration in the banking and financial sector of the economy. Morgan Stanley is required to supervise the handling of client accounts to assure compliance with internal procedures. This arbitration claim filed with FINRA seeks to recover losses stemming from the violation of these FINRA sales practice rules and regulations. Recommendations of unsuitable investment strategies and/or concentrated investments in the financial sector are both causes of action that form the basis for individual securities arbitration claims filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to assist you in determining whether you have a viable individual claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website, or to speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.