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Katy Zhao Allegedly Failed to Follow Client’s Instructions

Securities Lawyer Jonathan Kurta
By: Jonathan Kurta Author
July 8, 2025 at 9:24pm

Katy Zhao (CRD #: 5264406), a broker registered with Morgan Stanley, allegedly failed to follow an investor’s instructions, according to her BrokerCheck record, accessed on May 27, 2025. Read on if you have questions about her alleged conduct as a broker.

Investor Dispute

On February 21, 2025, an investor filed a dispute alleging that Katy Zhao failed to follow their instructions to execute an in kind transfer of the positions in their account to another firm.

In kind transfers allow investors to move their securities from one firm to another without needing to liquidate them.

This dispute was settled for $156,637.15.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Background Information

Katy Zhao has passed the following exams:

  • Investment Banking Registered Representative Examination – Series 79TO
  • Securities Industry Essentials Examination – SIE
  • Research Analyst Exam – Part I Analysis Module – Series 86
  • Research Analyst Exam – Part II Regulations Module – Series 87
  • General Securities Representative Examination – Series 7
  • Uniform Investment Adviser Law Examination – Series 65
  • Uniform Securities Agent State Law Examination – Series 63

Katy Zhao is a registered broker in 28 states and the District of Columbia. She is also a registered investment adviser in California, Florida, New Jersey, and Texas.

Kurta Law Can Help

If you worked with Katy Zhao 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 that 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. 

 

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