|
| Company |
Problem
|
Date |
Fund Police Opinion
|
Rating |
|
|
Morgan Stanley
|
The company is being sued for not adequately disclosing payments recieved to promote favored annuity products.
|
1/31/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Morgan Stanley
|
The company failed to disclose fee arrangements when selling annuities products to investors. Morgan Stanley was recieving payments as incentives to sell preferred products.
|
1/31/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Morgan Stanley
|
The company failed to send prospectuses to investors who were considering the purchase of new stocks. Employees were also accused of embezzlement and fraud.
|
1/17/2005
|
This is a slam dunk case of RED LIGHT. Avoid Morgan Stanley!
|
Red Light
|
|
|
Morgan Stanley
|
Investors are accusing Morgan Stanley of taking kickbacks on Variable Annuities. They also claim the company concealed the Annuities' fees and overlooked whether or not they were suitable for investors.
|
1/10/2005
|
Annuities and Morgan are a dangerous combination. FP suggest you stay away from both.
|
Red Light
|
|
Morgan Stanley
|
Morgan Stanley overstated the value of certain bonds by $75 million. The bonds were valued at what Morgan Stanley thought a willing buyer and seller should enter into an exchange.
|
11/8/2004
|
The bad news keep coming. This is an indication of a deep rooted problem of NOT putting client interest. first.
|
Red Light
|
|
Morgan Stanley
|
Morgan Stanley failed to disclose information to investors that notified them about incentives brokers received for selling funds on a preferred fund-families list.
|
10/1/2004
|
This is the latest is a long series of ethical issues this firm faces. HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Morgan Stanley
|
Penalized for severely delayed filing of customer complaints about their brokers. The company delayed filing over 1800 disclosures from Jan. '02- March '04.
|
6/30/2004
|
Beware of commission based stock brokers.
|
Red Light
|
|
Morgan Stanley
|
The New Hampshire Bureau of Securities Regulation filed fraud charges against MS for rewarding brokers improperly with non-cash incentives to sell their own products. Also in the complaint, the company solicited clients to purchase unregistered stocks.
|
6/18/2004
|
While the SEC and NASD have done their best to enact law changes that specifically outlaw certain sales practices that may not be in the best interest of brokerage customers, some brokerage firms have chose to function as if the laws did not apply to them
|
Red Light
|
|
Morgan Stanley
|
Fund companies that had sale agreements with MS paid higher than normal commissions to cover the costs of the agreements.
|
1/14/2004
|
While the SEC and NASD have done their best to enact law changes that specifically outlaw certain sales practices that may not be in the best interest of brokerage customers, some brokerage firms have chose to function as if the laws did not apply to them
|
Red Light
|
|
Morgan Stanley
|
Thirteen fund companies, including Fidelity Investments, Franklin Templeton and PIMCO (all involved in their own fund scandals), pay up to 0.20% of fund sales and 0.05% of assets annually to be listed on the firm's Partners Program list.
|
1/12/2004
|
While the SEC and NASD have done their best to enact law changes that specifically outlaw certain sales practices that may not be in the best interest of brokerage customers, some brokerage firms have chose to function as if the laws did not apply to them
|
Red Light
|
|
Morgan Stanley
|
Directed investors to mutual funds in return for millions in brokerage fees. Did not disclose to clients.
|
1/8/2004
|
As a general rule, Fund Police does not favor mutual funds managed and sold by brokerage firms. These products often have above average fees and lackluster performance. Beware of commission based stock brokers.
|
Red Light
|
|
Morgan Stanley
|
Directed brokerage deals that lead to SEC charges against Morgan Stanley has motivated the mutual fund industry's main trade group, the Investment Company Institute, to call for a ban on all soft-dollar practices.
|
12/15/2003
|
While the SEC and NASD have done their best to enact law changes that specifically outlaw certain sales practices that may not be in the best interest of brokerage customers, some brokerage firms have chose to function as if the laws did not apply to them
|
Red Light
|
|
Morgan Stanley
|
MS charged by the NASD with violating NASD rules by using sales contests and non-cash incentives for brokers to sell particular products.
|
9/23/2003
|
While the SEC and NASD have done their best to enact law changes that specifically outlaw certain sales practices that may not be in the best interest of brokerage customers, some brokerage firms have chose to function as if the laws did not apply to them
|
Red Light
|
|
Morgan Stanley
|
MS is being charged by the Massachusetts Securities Division for the sales incentive violation, only under a civil charge for misleading investors about the existence of their incentive programs.
|
9/23/2003
|
While the SEC and NASD have done their best to enact law changes that specifically outlaw certain sales practices that may not be in the best interest of brokerage customers, some brokerage firms have chose to function as if the laws did not apply to them
|
Red Light
|
|
Morgan Stanley
|
Morgan Stanley failed to disclose compensation received from other fund companies for selling their products. Also did not report adequately about broker compensation arrangements to investors.
|
9/23/2003
|
While the SEC and NASD have done their best to enact law changes that specifically outlaw certain sales practices that may not be in the best interest of brokerage customers, some brokerage firms have chose to function as if the laws did not apply to them
|
Red Light
|
|
Morningstar
|
Erroneous fund data that was recieved by Morningstar was not correctly updated on its website. The data reported that the Rock Canyon Top Flight Fund had seen a 25% increase in value from a capital gains distribution. The numbers were not corrected after Morningstar was notified by the source of the inflated data.
|
10/4/2004
|
This shows that when you put too much faith in any one information provider, they may disappoint. We predict M-Star will get this resolved. That said, look at Lipper and other data vendors to diversify your information sources.
|
Green Light
|
|
Morningstar
|
SEC is investigating whether or not to charge Morningstar for not promptly updating incorrect data on their website regarding a fund's performance. A Wells notice was given to Morningstar on May 24, 2004 notifying them of the impending investigation.
|
9/27/2004
|
This shows that when you put too much faith in any one information provider, they may disappoint. We predict M-Star will get this resolved. That said, look at Lipper and other data vendors to diversify your information sources.
|
Green Light
|
|
Morningstar
|
Morningstar, an advocate for shareholders, is being pursued by the SEC for a possible violation by not updating their website with then-current information about a fund's performance. The outdated info made the fund appear to have collected more generous returns than it actually had.
|
9/27/2004
|
This shows that when you put too much faith in any one information provider, they may disappoint. We predict M-Star will get this resolved. That said, look at Lipper and other data vendors to diversify your information sources.
|
Green Light
|
|
Morningstar
|
Morningstar may face civil charges by the SEC for publishing inanccurate returns data on their website about a fund, being notified of the mistake, and not promptly correcting that mistake.
|
9/24/2004
|
This shows that when you put too much faith in any one information provider, they may disappoint. We predict M-Star will get this resolved. That said, look at Lipper and other data vendors to diversify your information sources.
|
Green Light
|
|
Munich-American Risk Partners
|
Invovled with Marsh and McLennan's bid-rigging scandal in the insurance industry.
|
10/18/2004
|
Spitzer has implied there was a "Cartel" designed by M & M to skim money from customers. FP says STAY AWAY.
|
Red Light
|
|
Mutual Service Corp.
|
The company was fined $1.3 million by the NASD for directed-brokerage violations.
|
10/17/2005
|
This is why fee-only advisors serve your best interest. Go to www.NAPFA.com for additional information.
|
Red Light
|
|
National Clearing Corporation
|
The charges brought against Nat'l Clearing are the first time a clearing arm has been charged in the mutual fund scandal investigations.
|
8/26/2004
|
Work with a reputable firm with a clean track record.
|
Red Light
|
|
National Clearing Corporation
|
Charged by SEC for assisting JB Oxford Holdings with market-timing and late-trading.
|
8/26/2004
|
Work with a reputable firm with a clean track record.
|
Red Light
|
|
National Clearing Corporation
|
The clearing arm and its former Chief Executive were involved in concealing the market timing practices from the mutual funds with shares involved.
|
8/26/2004
|
Work with a reputable firm with a clean track record.
|
Red Light
|
|
National Planning Corp.
|
The company was fined $1.3 million by the NASD for directed-brokerage violations.
|
10/17/2005
|
This is why fee-only advisors serve your best interest. Go to www.NAPFA.com for additional information.
|
Red Light
|
|
National Securities
|
Charged with Market Timing by the NASD.
|
8/23/2004
|
Work with a reputable firm with a clean track record.
|
Red Light
|
|
National Securities
|
Not allowed to open new accounts for clients for 30 days because of market timing in mutual funds and a lack of supervision for it.
|
8/23/2004
|
Work with a reputable firm with a clean track record.
|
Red Light
|
|
Nations Funds (Owned by Bank of America)
|
Parent company, Bank of America, to Nations Funds and Columbia Funds, finally settled with regulators over charges of abusive trading.
|
3/1/2005
|
Big fines mean big trouble. Red light.
|
Red Light
|
|
Nations Funds (Owned by Bank of America)
|
Bank of America Capital Management (BACAP) has settled with the SEC for $375 Million for timing in their Nations Funds.
|
2/16/2005
|
You couldn't dig a deeper grave for yourself than BACAP. Stay away.
|
Red Light
|
|
Nations Funds (Owned by Bank of America)
|
Assisted with late-trading and market-timing in a hedge fund.
|
2/1/2005
|
We'll assist you away from this fund.
|
Red Light
|
|
