Former Morgan Stanley & Co. financial advisor Billy Busch has made a disclosure regarding the settlement of a FINRA lawsuit. Mr. Bush’s clients allege they were sold unsuitable investments. The information is in the public domain.
Unsuitable Investments – Explained
Brokers must make investment recommendations that meet their objectives, needs, and risk tolerance. Your broker must know what is best for you. If they fail to do so, you could have a claim.
This issue is addressed by FINRA Rule 2211. It’s also known as the suitability principle. The rule basically states that your broker must have a reasonable basis for deciding that an investment is suitable.
Your broker has the duty – Even if you agree to the investment, you may be entitled to a claim. It is your responsibility to gather as much information as possible before recommending investments or a strategy.
The arbitration may be required for a broker who acts irresponsibly with your money.
FINRA’s disclosure requirement
The Financial Industry Regulatory Authority (FINRA), the body that licenses brokerage firms and stockbrokers, also requires them to report cases of regulatory sanctions, disputes, and customer complaints on their BrokerCheck profile.
Certain personal financial matters, such as judgments, liens, and personal bankruptcies, are also required to be disclosed by brokers.
BrokerCheck record of Billy Busch
From June 2009 to May 2019, William (Billy) Busch was a broker with Morgan Stanley & Co.
From April 2019 onwards, he has been a registered representative of Purshe Kaplan Sterling Investments.
He further discloses the business affiliations he has with Americana Partners Planning Strategies, PKS Financial Investment, and American Partners LLC.
In November 2016, FINRA case 16-03438 was filed by a Morgan Stanley customer alleging misrepresentation and unsuitable investments in the account of the customer. The period of the misconduct was defined to be between 2010 and 2014. In April 2019, the customer was paid $250K to settle the issue.
Customer advisory
FINRA makes available an arbitration process to help investors file claims for damages on account of losses arising out of broker or broker-dealer misconduct. If you have had to deal with William (Billy) Busch and believe you may have been an inadvertent victim, we encourage you to seek professional guidance.
Haselkorn & Thibaut, P.A., works with investors nationwide to enable them to recover losses incurred in this manner, through FINRA arbitration. Most of our work is done on a contingent basis; if you don’t get money back, you don’t pay our legal fees. Reach out to one of our experienced securities attorneys for a confidential discussion for free at 1-800-856-3352.
