Fired Morgan Stanley Advisor Barred
Self-regulator Finra has barred a former Morgan Stanley advisor who had been fired following alleged trading misconduct in client accounts, according to a letter of acceptance, waiver and consent published by the industry organization.
Kevin Smith, who had been in the securities industry since 1985, joined Morgan Stanley in 2007, Finra says.
The firm terminated him in 2016, citing concerns over Smith’s handling of a trust belonging to a family member who was a client of Morgan Stanley, as well as over a single trade that “may have been executed without confirming with the client beforehand, according to the client,” the regulator says, citing Morgan Stanley’s termination notice for the broker.
Smith never registered with another firm, according to Finra.
This year, in the course of the regulator’s investigation into Smith’s termination, he allegedly declined to appear for testimony, for which the regulator barred him, Finra says in the letter of consent.
In his 31 years in the financial services industry, Smith had two disclosure records: the termination from Morgan Stanley in October 2016 and a customer dispute from June of that year alleging a 2015 purchase of two structured notes had been misrepresented, according to his BrokerCheck profile.
That dispute was settled for $34,445, according to BrokerCheck.