Retired Morgan Stanley rep fined for unsuitable advice

Timothy Gibbons over-concentrated elderly clients in energy investment.
NOV 20, 2017

The Financial Industry Regulatory Authority has fined retired Morgan Stanley rep Timothy Thomas Gibbons $20,000, suspended him for 18 months, and required that he pay almost $717,000 in restitution to five elderly clients. Finra said that Mr. Gibbons recommended that the five customers invest 65% to 79% of their account values in a single high-risk energy stock. The customers were between 72 and 90 years of age, and Finra said some of Mr. Gibbons' recommendations were unsuitable for each customer based on their age, risk tolerance, investment objectives and financial circumstances. In all, the broker's recommendations resulted in collective realized and unrealized losses of over $960,000 in the five customers' accounts. Mr. Gibbons accepted and consented to Finra's findings without admitting nor denying them. He began his career in 1973 at Howard Weil Labouisse Friedrichs and moved to Legg Mason in 1988. That firm's retail business was moved to Citigroup in 2006, which in turn was incorporated into Morgan Stanley in 2009.

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.