As someone who both analyzes financial information and writes about it, I’m frequently captivated by instances where those in the finance profession encounter disagreements, like the latest resolution featuring the ex-Morgan Stanley finance consultant Billy Busch. It has been revealed that Mr. Busch reached a settlement in a FINRA dispute, which focused on the issue of clients being offered investments that were misaligned with their objectives. Details regarding this case are available to the public.
Unsuitable Investments – What Does That Mean?
Let’s break things down in simple terms. Financial advisors have the responsibility to recommend investments that align with their clients’ objectives, financial needs, and how much risk they’re willing to take on. As your advisor, they need to know what’s best for you and your portfolio. If they fall short and you suffer losses as a result, you might have grounds to file a claim.
FINRA Rule 2211 covers this – it’s the suitability rule. The bottom line is that your advisor needs a solid reason to believe an investment is appropriate for you. And even if you give your okay to an investment, they have a duty to thoroughly vet investment opportunities before recommending them.
When a broker mishandles your investments, arbitration might be the next step to rectify the situation.
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FINRA’s Transparency Requirement
FINRA—the organization that oversees brokers and brokerage firms—also demands that they report any disciplinary actions, disputes, and client complaints on their BrokerCheck profiles. And it doesn’t end there—brokers must also disclose certain personal financial issues like judgments, liens, and personal bankruptcies.
A Closer Look at Billy Busch’s BrokerCheck Record
Billy Busch worked as a broker at Morgan Stanley from June 2009 until May 2019. Since April 2019, he’s been with Purshe Kaplan Sterling Investments. Plus, he’s listed business ties with Americana Partners Planning Strategies, PKS Financial Investment, and American Partners LLC.
Let’s not ignore an eye-opening financial fact: Did you know that studies have shown that approximately 7% of financial advisors have been disciplined for some form of misconduct? That’s a sobering reality further highlighting the importance of doing your due diligence—double-check your advisor’s FINRA BrokerCheck profile, which is a valuable resource for investors to learn about any potential issues.
In the spotlight here, FINRA case 16-03438 was initiated by a Morgan Stanley client in November 2016, accusing Bush of misrepresentation and recommending unsuitable investments. The alleged misconduct occurred from 2010 to 2014. To resolve this, the client was paid $250K in April 2019.
How Can Customers Protect Themselves?
Should you find yourself in a tough spot with an advisor like William Bush, remember that FINRA provides an arbitration process to assist investors in claiming damages related to broker wrongdoing. If you feel you’ve been wronged, I can’t stress enough how critical it is to get professional advice.
Haselkorn & Thibaut, P.A. is in the business of helping investors across the country recover their losses through FINRA arbitration—and they only get paid if you recover your money. So, if you’ve found yourself in a bind, I urge you to talk to one of their securities attorneys. They offer confidential and free discussions at 1-800-856-3352.
In conclusion, as Warren Buffett once famously said, “Risk comes from not knowing what you’re doing.” By staying informed and vigilant about your investments and the advisors who manage them, you can guard against unnecessary risk and ensure your financial journey is on the right track.
