Morgan Stanley Broker Noah Alweiss Has Customer Complaint

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Noah Alweiss (Alweiss), currently associated with Morgan Stanley, has at least one disclosable event. These events include one customer complaint, alleging that Alweiss recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint on November 26, 2024.

Claimant alleges, inter alia, that the trading and investment strategy executed in the client’s account was unsuitable – 2022-2023

Under the securities laws brokers are obligated to act in their clients’ best interests and provide only suitable recommendations for investments to the client. The SEC has also implemented “Regulation Best Interest (Reg BI)“, which, according to the SEC, strengthens the brokerdealer standard of conduct beyond current suitability obligations, requiring brokerdealers to act in a retail customer’s best interest when recommending any securities transaction or investment strategy involving securities. Regulation Best Interest and the fiduciary standard for investment advisers are drawn from key fiduciary principles that include an obligation to act in the retail investor’s best interest and not to place their own interests ahead of the investor’s interest.

Brokers must first collect and analyze sufficient information about a retail investor to reasonably conclude that the account recommendations are in the investor’s best interest. Recommendations cannot be based on materially inaccurate or incomplete information. Every recommendation’s cost and investor details are always part of material information. Types of costs that must be considered including account fees, commissions and transaction costs, tax considerations, as well as indirect costs.

In addition to obligation to understand the customer the broker must also investigate the product being sold. FINRA firms have an obligation to conduct a reasonable investigation of the issuer and the securities they recommend in offerings. A brokerage firm has a special relationship with a customer from the fact that in recommending the security, the broker represents to the customer that a reasonable investigation has been made. So, a brokerage firm should not depend solely on information from the issuer regarding a company but must perform its own thorough investigation.

To protect investors, it should be required to mandate broker disclosures. Brokers are required by FINRA to reveal the events such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters on their public BrokerCheck reports. FINRA has recognized that recent research shows past regulatory and customer complaint issues can indicate future problems for brokers. FINRA’s Office of the Chief Economist (OCE) published a study showing the predictability of disciplinary and disclosure events based on past similar events. The OCE study showed that past disclosure events, including regulatory actions, customer arbitrations and litigations of brokers, have significant power to predict future investor harm. The data shows that where a member firm on-boards brokers with a significant history of misconduct there is a high likelihood that the broker will continue to engage in similar behavior.

Alweiss entered the securities industry in 2011. Alweiss has been registered as a Broker with Morgan Stanley since 2011.

Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.

 

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