The MPW Group in full In order to increase their profits, the financial advisors of Morgan Stanley, based in Illinois, engage in unethical business practices. It conceals its odious terms in the accompanying fine print in an effort to trick potential investors into signing agreements that are detrimental to their interests.
It is in your best interest to investigate their unethical business practices and predatory disclosures before entrusting them with your investments and your future financial stability. You will then be able to decide with complete knowledge whether or not it is appropriate for you to trust them:
About the MPW Group Morgan Stanley
Oak Brook, Illinois-based financial advising firm The MPW Group Morgan Stanley is a subsidiary of Morgan Stanley. Their telephone number is 630-573-9694, and their address is 2211 York Rd Ste 100 in Oak Brook, Illinois 60523, in the United States. The company makes the claim that it can assist clients in achieving all of their objectives with regard to retirement and investments.
Additionally, they invest the money of their customers as if it were their own money. The company asserts that it has a comprehensive understanding of the requirements of its clients and that it provides them with essential financial guidance.
This company provides a wide range of services, such as UGMA/UTMA, 401(k) rollovers, stock option plans, retirement planning, asset management, trust accounts, and estate preparation.
Scott Magnesen and Malcolm Proudfoot are the two individuals who oversee day-to-day operations at this company. Other noteworthy employees of this company include Jennifer Magnesen, Brett Proudfoot, and Ryan Magnesen. Lance Walker is also employed here.
In spite of the fact that this company asserts to have many enticing claims to make about how much it cares about its customers, the disclosures that it has provided reveal a completely different narrative. According to the disclosures made by the MPW Group Morgan Stanley, the company generates money by disregarding the needs of its customers. They take advantage of their customers by charging them hidden fees and then using the money they receive from those customers to line their own pockets.
The following section of this analysis will assist you in developing a deeper comprehension of the unethical acts that they engage in:
Red Flags in the MPW Group Morgan Stanley You Must Know
It is in your best interest to look up any potential financial advisor on the FINRA BrokerCheck database before beginning to deal with them. You will find out there about their experience, their prior and current employer(s), the tests they have passed, and most crucially, the disagreements they have had in the past.
According to the FINRA BrokerCheck listing of Scott Magenesen, he had one legal dispute with a client. It occurred in 2004.
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Using the 12b-1 Fee Structure
The fact that the MPW Group of Morgan Stanley advises assets with 12b-1 fees is a significant flaw in the firm’s operations. This is a marketing fee that businesses pay to brokers so that the broker can promote the company’s investments. The 12b-1 charge contributes to an increase in the cost of investing in security while providing no additional value.
An investigation conducted by the SEC found that investments that charged 12b-1 fees produced returns that were comparable to those investments that did not charge this fee. This indicates that investments that charge 12b-1 fees provide a lower return on investment (ROI) compared to those investments that do not charge this cost.
The 12b-1 charge is calculated as a percentage of the total. Therefore, the size of your portfolio will determine how much you have to pay in 12b-1 fees. This is an especially significant disadvantage for investors who have substantial portfolios to contend with. This cost accumulates over time, which makes it unfavorable for investment portfolios designed to achieve growth over the long run.
In addition, the advisor is granted the ability to charge an unlimited number of additional hidden fees by virtue of this single cost. If you have solid evidence that your financial advisor is not concerned with increasing his earnings, then and only then can you assume that he will not charge you any hidden fees in the form of 12b-1 fees.
Using Clients’ Funds for Personal Gains
The MPW Group Morgan Stanley trades the investments it recommends to its clients. This allows the firm to use its clients’ funds to manipulate the returns of its investments.
While some may view it as “eating your cooking”, it gives the broker leeway to abuse their client’s portfolios. Many advisors who trade recommended securities may perform ‘front-running’, a highly notorious practice.
In front-running, an advisor trades a specific investment and then recommends it to his clients afterward. It’s an unethical practice that you should be extremely cautious of while working with this broker firm.
If you’re looking for wealth advisory services, the MPW Group Morgan Stanley is not the best option available. They have too many red flags to count.
From charging hidden fees to using their clients’ funds for generating personal profits, they do everything wrong. It would be best to avoid this firm and find someone else.