It can be very challenging to find the right financial counselor. Knowing which consultants to avoid can help you focus your search and reduce the risk of making a disastrous decision. Walker Group Morgan Stanley is one such advice business that you should avoid.
As an investor, why should you stay away from this company? Certainly, many shortcomings may be discussed.
To begin, the company’s management has a checkered record. In addition, its disclosures include several problematic aspects that could endanger you and your investment portfolio. The purpose of this article is to provide you with a concise overview of these topics so that you can make an educated choice.
Introduction to the Walker Organization M. S. Morgan & Co.
The Walker Group Morgan Stanley is a Washington, DC-based financial advisory firm. You can reach them at (202) 292-5400 or visit their office at 1747 Pennsylvania Avenue NW Ste 700 in Washington, DC, 20006.
The firm’s stated mission is to serve the planning, liability management, investment, and governance needs of high-net-worth families, philanthropic organizations, and businesses. Risk management, complete wealth planning, pre-liquidity planning, corporate services, investment management, and more are just some of the services they provide for their clientele.
Suzanne Ratelle Spano is the Associate Vice President, and Dexter Mead Walker is the Executive Director at this company.
The company also provides its patrons with assistance in the areas of lifestyle consulting, business services, financial management, and lending.
While the Walker Group Morgan Stanley’s statements may look fine on paper, there are many problems you should be aware of before working with them.
The Walker Group: Why You Should Stay Away M. S. Morgan & Co.
Several red flags indicate you should avoid doing business with the Walker Group at Morgan Stanley. The following are among the most notable of these:
Incompetent Management
You should always check the FINRA BrokerCheck database for information about a potential new financial advisor. You can find out about their work history, education, state licensing, and any potential problems with the law.
In 2003, Dexter Walker had one customer disagreement, according to his FINRA BrokerCheck report. The charges presented in this conflict are too serious to be dismissed because of how little they initially appear.
The customer complained that Dexter performed unapproved trades and disregarded their requests. They wanted $5,000 in compensation.
The company that employs Dexter has refuted the claim, but they haven’t said why they’re doing so.
It’s serious business to be accused of disobeying orders and making unauthorized trades. Dexter Walker has shown in this dispute that he is willing to put his personal needs ahead of those of his clients. You risk having your money stolen or lost if your advisor makes illicit trades on your behalf.
As expected, the Walker Group Morgan Stanley seeks to keep this crucial fact from potential customers.
Creating Undue Peril for Customers
The Walker Group at Morgan Stanley uses the widely reviled practice of performance-based compensation for its advisers.
Their compensation is tied to the success of a portfolio of securities when they use a performance-based fee structure. This motivates individuals to take more risks in the hopes of higher returns in the short run.
However, gambles almost seldom payout. These methods almost always end in failure and financial loss for the investor.
High-risk strategies are especially harmful to growth-oriented portfolios. In the end, the investor loses money using these methods. You have little legal recourse if you lose money as a result of your advisor’s high-risk recommendations. That’s so they can claim you knew what you were getting into and that no rash choices were made without your knowledge and approval.
Your advisor will be motivated by the fee structure to take risks that may not meet your needs. Experts who charge in this way have been shown to increase their exposure to risk while producing subpar results.
Gaining Money Through Commissions
The Walker Group Morgan Stanley’s primary source of income is the commission it receives from the selling of its goods and those of its affiliates. If your financial advisor is paid through commissions, they have an economic incentive to disregard your needs.
Advisors who sell their investments to their clients have fewer options available to them when making investment recommendations. Therefore, the Walker Group Morgan Stanley has an incentive to steer you away from potentially lucrative and appropriate investment alternatives if doing so would not result in adequate compensation for the firm.
One of the primary motivations for advisors to promote unsuitable investments is the potential for higher compensation. They may put their financial interests ahead of yours, putting you in danger.
Keep in mind that Dexter has a track record of not listening to his customers.
Most financial advisors are recommending low-quality assets to their clients in exchange for fat fees. By making the client think that low returns are all they can expect, the advisor may collect his commissions in peace.
Conclusion
Walker Consulting When it comes to providing financial advice, Morgan Stanley is the worst possible choice. There are a lot of red flags in their filings that make it seem like the company is expanding at the expense of its clients’ investments.
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