Subscribe to our mailing list

* indicates required

 

 

 

 

BROWSE BY TOPIC

ABOUT FINANCIALISH

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.

 

SUBSCRIBE FOR
NEWSLETTERS & ALERTS

FOLLOW US

Investor Protection

Why Was My Broker Suspended?

November 6, 2019

by Howard Haykin

 

 

You're a Morgan Stanley customer and signed up for a Portfolio Loan Account (“PLA”) - a loan or line of credit that’s secured by assets in your brokerage account. Each time you want to obtain funds from the PLA, you’re supposed to submit a signed Disbursement Request Form.

 

 

SO MUCH FOR REQUIREMENTS!  You told your broker you didn’t want to be bothered with signing the Disbursement Request each time you needed funds. So, to accommodate you, the broker had you sign a blank ‘Master’ Disbursement Request Form. Thereafter, on the 60 or so occasions when you needed funds, your broker filled in the details on a copy of the pre-signed ‘Master’ Disbursement Request and submitted the form for processing. And each request for funds was fulfilled.

 

However, along the way your broker was caught. In addition to being asked to resign from Morgan Stanley, he was fined $10,000 and suspended 2 months - for violating banking or securities rules and regulations.

 

 

AND THAT’S WHY YOUR BROKER WAS SUSPENDED.    Firm policies and procedures, along with securities rules and regulations, are in place for your protection – particularly when it comes to safeguarding cash from unlawful withdrawals.

 

Which is why you shouldn't ask brokers to intentionally break the rules simply for your convenience. They won't tell you so, but they are putting their careers at risk. Instead, ask fpr some workable alternatives.