- February 1, 2022
- Morgan Stanley
Christopher McCaffrey (CRD#: 2735236) is a dually registered Broker and Investment Advisor at Morgan Stanley in Napa, CA.
He entered the securities industry in 1996 and previously worked for Morgan Stanley & Co., Inc.; Morgan Stanley; Morgan Stanley DW, Inc.; and A.G. Edwards & Sons, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2021, a customer complaint was filed against Christopher McCaffrey. The allegation states, “Client alleged FA made misrepresentations and unsuitable recommendations related to options trading strategy.” Damages of $15.7M are requested. The customer dispute is pending.
In addition, Christopher McCaffrey has been the subject of one customer complaints, including the following:
- April 2004 – “ALLEGES UNAUTHORIZED TRADES. ACTIVITY TOOK PLACE 12/99 TO 3/00.” The customer dispute was denied.
For a copy of Christopher McCaffrey’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Options trading is complex and carries a high degree of risk. Depending on the options strategy employed, investors can be subject to investment loss that exceeds the principal amount invested. This is because options are inherently leveraged and can cause accelerated investment loss during adverse market movements. For this reason, options trading is only suitable for experienced investors who are prepared to accept meaningful portfolio risk.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
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