The Chase Companies Andrew Chase runs Morgan Stanley, which is a company that gives financial advice. It is a branch of the well-known bank Morgan Stanley, but before you work with them, you should read their reports to find out about any problems.
I’ll tell you about some of these problems so you can make an educated decision about this company:
About The Chase Group Morgan Stanley:
The Chase Group Morgan Stanley is a California-based company that helps people with their money. Its address is 2725 Sand Hill Rd Suite 100, Menlo Park, CA 94025, US, and its phone number is 650-234-2901.
Andrew Chase and Dan McCormick are in charge of the company. They help people handle their investments, give advice on how to live their lives, transfer wealth, and do many other things.
At first glance, the company seems like any other financial advisory team. However, it tries to hide a lot of things from investors who don’t know what to look for. Here are some of the things you need to know about the Chase Group Morgan Stanley.
Issues in The Chase Group Morgan Stanley You Should Know
You should look up a financial expert on FINRA BrokerCheck before you start working with them. This database gives you information about the advisor’s qualifications, work background, and any problems they’ve had with clients.
Andrew Chase is the managing director of the Chase Group at Morgan Stanley. If you look up his record on FINRA BrokerCheck, you’ll see that he has been in two disputes.
The first disagreement happened on January 1, 2006, and the client says she didn’t give clear instructions to sell two stocks on April 21, 2006, and buy five stocks on the same day. Also, the buyer said that Andrew had done the same thing twice before (on May 23 and May 25).
Andrew solved this problem and paid the full amount of fines that were asked for. Damages of $55,183 were asked for by the client.
His second dispute was filed on August 29, 2012, and the client said that she never put in a clear order for the shares that were given to her in May 2012 during a public stock offering. Andrew paid $38,640 to end this case. He said that this mistake was made by his team.
Having a lot of disagreements with clients because you don’t care about their needs or consent is a big red flag.
Adding on extra costs
There are 12b-1 fees on some of the goods that The Chase Group Morgan Stanley sells. The 12b-1 fee is a marketing fee that does nothing to increase the value of the property. Most of the time, this fee goes to your planner.
The 12b-1 fee adds to the cost of your investment without giving you anything in return. The SEC did a very thorough study to compare the results of mutual funds with and without 12b-1 fees.
It found no difference between the two in how much money they made. Instead, it came to the conclusion that investments with this fee are worse because they cost more.
Products “Selling”
Morgan Stanley is a part of Andrew Chase’s company. So, when they sell the bank’s own goods, they can earn big commissions.
In an ideal world, your advisor would focus on learning about your financial needs and make investing suggestions based on that. But in these situations, your planner has a reason to put your needs last and suggest investments that pay more commission.
A lot of bias can creep into an advisor’s advice if they sell their own or related goods. Take Christopher Aitken’s situation as an example. He is a UBS expert who told clients who didn’t need it to sign up for UBS’ YES strategy program. Now, he is being sued because he did the same thing.
Getting paid by commissions
Commissions bring in a lot of money for the advisors at this company. Getting paid through fees can cause a lot of problems for the client and lead to a lot of conflicts of interest.
This includes selling the same product twice, selling insurance that isn’t needed, giving bad advice, and lying.
Even one of these problems can cause you to lose a lot of money and stop your finances from growing. Because of this, you should be careful about hiring a consultant who sells goods that earn him commissions.
If you’re already a client of Chase Group Morgan Stanley, you should look at your investments and see which ones give them fees.
Putting clients in danger without reason
One big problem with this company is that it charges fees based on how well it does its job. This fee structure gives the company a reason to use high-risk strategies and not care about what’s best for its clients.
It’s especially risky for clients who want to take a low-risk or medium-risk method. Strategies with a lot of danger can make you lose a lot of money very quickly. Because of this, most buyers don’t want to buy them.
Worse, you can’t blame your advisor for these losses. It puts the client in a bad position while letting the expert charge a lot of money.
Conclusion
The Chase Group Morgan Stanley is not a good-looking company. At first, they seem like a good idea, but their list of problems is too big. The firm has a lot of red flags that make it unsuitable for most investors. For example, it has a past of disputes and sells its own investments.
If you want a financial expert in California, you should look somewhere else.
