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Morgan Stanley Ordered to Return Annuity Investment

October 13, 2017

A Finra arbitration panel has ordered Morgan Stanley to return a client’s investment in a variable annuity, InvestmentNews writes.

The wirehouse must rescind the annuity and pay back its client, Jacqueline Peters, $200,000 she paid for a SunAmerica Polaris Platinum III variable annuity in November 2013, according to the publication. The panel ruled that Morgan Stanley may not have properly disclosed the fees charged by SunAmerica, because it wasn’t clear whether Peters was provided with a prospectus before the purchase, InvestmentNews writes.

The panel declined Peters’ request for $55,333 in damages but also denied a request from Morgan Stanley and former broker Helen Holmes Timpe to expunge the case from her record, according to the publication.

Timpe, who’d started her financial services career in 1979 at Merrill Lynch, left Morgan Stanley in April, according to her BrokerCheck profile. She’s no longer registered with any firm, according to BrokerCheck.

Morgan Stanley also recently lost two advisors in California to Wells Fargo Advisors, ThinkAdvisor writes. Michael Muehl, who oversaw $180 million, had started in the industry in 1986, according to the publication. He had been with Morgan Stanley since 2006, according to his BrokerCheck profile. Bernard Suissa managed almost $193 million at Morgan Stanley before joining Wells Fargo Advisors, ThinkAdvisor writes. He had started his financial services career at Merrill Lynch in 1994 and had been with Morgan Stanley since 2009, according to his BrokerCheck profile.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.
  • To read the ThinkAdvisor article cited in this story, click here.