Bruce Galloway’s Recommendations Allegedly Not in Client’s Best Interest

Bruce Galloway (CRD #: 4669664), a broker registered with Morgan Stanley, allegedly failed to act in a client’s best interest, according to his BrokerCheck record, accessed on June 22, 2023. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Dispute

On April 21, 2023, an investor alleged that Bruce Galloway made certain recommendations that were not in the client’s best interest from 2021-2023.

Specifically, the client alleged that Bruce Galloway recommended he maintain a Liquidity Access Line to temporarily fund a home purchase until he received mortgage proceeds, and that he invest in certificates of deposit while this credit was still outstanding.

This dispute was denied by the firm. Investors should know, however, that firms can deny disputes without an external review. Investors can potentially recoup their losses by pursuing FINRA arbitration following a denial.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles describe an investor’s age, tax status, and financial goals.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Background Information

Bruce Galloway has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Bruce Galloway is a registered broker in 30 states and the District of Columbia. He is also a registered investment adviser in California and Texas.

He has also worked for Ameriprise Financial Services (CRD#:6363) and IDS Life Insurance Company (CRD#:6321).

Kurta Law Can Help

If you worked with Bruce Galloway and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.