In a recent development, Morgan Stanley advisor Fletcher King has been named in a customer dispute alleging that investments recommended for the client were not in her best interests. The complaint, filed by the client’s attorney, raises concerns about the suitability of the investment advice provided by King during the period of 2021-2023.
According to the disclosure on King‘s FINRA BrokerCheck profile, the client is seeking damages of $500,000 in relation to managed/wrap accounts. The dispute is currently pending, and the resolution is yet to be determined. As of February 1, 2024, King remains employed by Morgan Stanley as a broker and investment advisor, a position he has held since June 1, 2009.
Understanding the Allegation and FINRA Rule 2111
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The core of the complaint lies in the alleged unsuitability of the investments recommended by Fletcher King to his client. FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis to believe that their investment recommendations align with their client’s best interests.
This rule mandates that advisors consider various factors, such as the client’s age, financial situation, investment objectives, risk tolerance, and investment experience, before making any recommendations. Failure to adhere to this rule can result in disciplinary action by FINRA and potential legal consequences. Investopedia provides a detailed explanation of FINRA Rule 2111 and its implications for investors and advisors.
The Significance for Investors
This case serves as a reminder of the importance of working with a trustworthy and competent financial advisor. Investors rely on the expertise and guidance of their advisors to make informed decisions about their investments, and any breach of trust can have severe financial repercussions.
It is crucial for investors to remain vigilant and regularly review their investment portfolios to ensure that they align with their goals and risk tolerance. If an investor suspects that their advisor has acted against their best interests, they should promptly seek legal advice to protect their rights and explore potential avenues for recovery.
Investment fraud and bad advice from financial advisors can have devastating effects on investors’ portfolios and financial well-being. According to a study by the U.S. Government Accountability Office, financial fraud targeting older Americans resulted in estimated losses of at least $2.9 billion in 2021 alone.
Red Flags and Recovering Losses
Investors should be aware of several red flags that may indicate financial advisor malpractice, including:
- Unexplained or excessive account losses
- Unauthorized trades or transactions
- Lack of communication or transparency from the advisor
- Pressure to make unsuitable investments
If an investor believes they have suffered losses due to the misconduct of their financial advisor, they may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation for losses caused by the negligence, fraud, or breach of fiduciary duty by their advisor or brokerage firm.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Fletcher King and Morgan Stanley in relation to this complaint. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration.
Investors who have worked with Fletcher King or Morgan Stanley and believe they may have been affected by unsuitable investment recommendations are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients do not pay any fees unless a successful recovery is obtained. To discuss your case with an experienced investment fraud attorney, call Haselkorn & Thibaut‘s toll-free number at 1-888-885-7162 .
