Iorio Altamirano LLP is investigating claims on behalf of Morgan Stanley customers after the firm agreed to pay restitution of more than $1.7 million over supervisory failures related to its 529 plan share-class recommendations. If you have lost money with Morgan Stanley or were advised by a Morgan Stanley representative to purchase particular share classes of 529 savings plans, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Morgan Stanley and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 30, 2020, over findings that between January 1, 2013, and June 30, 2018, the firm failed to establish and maintain a system reasonably designed to supervise representatives’ recommendations to customers to purchase certain share classes of 529 savings plans, in violation of MSRB Rule G-27. Specifically, the FINRA AWC stated that Morgan Stanley’s supervisory system was not reasonably designed to supervise 529 share-class recommendations executed 1) in certain legacy Smith Barney accounts or 2) through transactions made directly with plans.
Morgan Stanley is headquartered in Purchase, New York, and has been a FINRA member firm since May 2009. As of December 2020, Morgan Stanley had approximately 720 branches and over 23,500 registered persons.