BROWSE BY TOPIC
- Investments - Private
- Investor Protection
- Investments - Unsuitable
- Compliance Concepts
- Investments - Strategies
- Regulatory Sanctions
- Rules & Regulations
- Bad Advisors
- Bad Brokers
- Boiler Rooms
- Wall Street News
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Morgan Stanley Broker Crosses Signals with Customer
by Howard Haykin
During an in-person meeting, a Morgan Stanley broker spoke with his customer about transferring additional accounts to Morgan Stanley; the customer already had several accounts with that broker. Before concluding the meeting, the broker had the customer sign a blank ACAT form. [An ‘Automated Customer Account Transfer’ form is used to move securities from one brokerage firm to another.] Two months later, they renewed the discussion, this time regarding a specific brokerage account with a value in excess of $1 million. The customer provided the broker with account statements for him to attach to the already signed ACAT form.
The next day, believing the customer had authorized him to transfer the account, the broker completed the blank ACAT form and submitted it for processing. However, later that day, the customer emailed the broker directing him not to transfer the account to Morgan Stanley. By the time the broker responded the following business day, the transfer had already been processed. The customer disputed the transfer, though he subsequently withdrew the complaint.
FOR THE SAFETY OF ALL CONCERNED. Perhaps it simply was a matter of crossed or mixed signals between the broker and customer. In any case, the broker committed several lapses in judgment. By taking an expedient and careless route toward processing the transfer – i.e., by putting the cart ahead of the horse - this episode ended badly for all parties involved. There's a reason and a logic to following the assigned order of business.
[For further details, click on … FINRA Case #2019063042701.]