Former Morgan Stanley Advisor Agrees to Settle with FINRA for Unapproved Investments
From the desk of Jim Eccleston at Eccleston Law
Former Morgan Stanley advisor Sara Y. Qazi has agreed to a $15,000 fine and a three-month suspension after the Financial Industry Regulatory Authority (FINRA) had alleged that she aided a client in an unauthorized private investment.
The Acceptance, Waiver, and Consent (“AWC”) disclosed that from March to June 2020, Qazi, now employed at Raymond James & Associates, assisted a customer in purchasing $250,000 worth of a healthcare company's stock not offered by Morgan Stanley, her then-employer, without approval. Despite not receiving compensation for the transaction, Qazi conducted due diligence on the healthcare company at the client's request. This included reviewing financial data, participating in due diligence calls with the company's management, and coordinating fund transfers for the unnamed company mentioned in the settlement.
Additionally, between June and July 2020, Qazi distributed a written presentation crafted by the healthcare company to five individuals, including a Morgan Stanley customer. According to AdvisorHub, the presentation included information about a private offering by the company.
The AWC states that those actions by Qazi violated FINRA rules related to communication standards with the public and engaging in private securities transactions without firm approval. Additionally, the activities were deemed to breach Rule 2010, which mandates "high standards" of conduct.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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