Elizabeth Layne Involved in a $15 Million Unsuitability Dispute
Elizabeth Layne (CRD #:4497721), a broker and investment advisor registered with Morgan Stanley is involved in an unsuitability dispute according to her BrokerCheck record.
According to the allegations filed on November 1, 2021, Elizabeth Layne employed an unsuitable options investment strategy. The investor is seeking $15,708,558—the case is still pending.
What is a Suitable Investment?
A financial advisor who recommends a security or investment is subject to ethical standards enforced by law. One such standard is known as the suitability rule, which is described in FINRA Rule 2111.
FINRA Rule 2111 requires registered financial advisors to have a “reasonable basis” to believe that a recommended transaction or investment strategy suits their client’s needs.
According to FINRA, the three prongs of a suitability determination are 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
- Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client’s personal profile. The profile includes information on the investor’s financial goals, investing experience, and risk tolerance.
- Quantitative Suitability: Brokers with control over a customer’s account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.
If you’ve lost money due to a financial advisor’s bad recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases
Background Information
Elizabeth Layne has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Elizabeth Layne is a registered broker in 456 states and Washington D.C. She is also a registered investment advisor in Georgia and Texas.
Other than Morgan Stanley, Elizabeth Layne has worked with the following firm:
Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
Kurta Law Can Help
If you have worked with Elizabeth Layne and have concerns about your investments, don’t hesitate to 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.