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Investors Allege Kenneth Munao Violated Suitability Rule

Kenneth Munao (CRD #: 4525441), a broker registered with Morgan Stanley, is involved in a pending dispute, according to his BrokerCheck record, accessed on May 18, 2023. Read on if you have questions about his alleged conduct as a broker.

Investor Dispute

On April 3, 2023, several investors filed a dispute alleging that Kenneth Munao violated the suitability rule with regard to their managed account between August 2017 and August 2020. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consider the information contained in an investor’s profile, such as their age, tax status, and overall financial situation.

Investments may be unsuitable for many reasons, such as a lack of liquidity, which makes them difficult to sell in the short term, or a high degree of risk.

Securities transactions can also be quantitatively unsuitable. An excessive number of trades generates trading fees and commissions that can reduce a client’s returns so severely that the investor doesn’t make any profit.

Suitability also applies to investment strategies. A common example is overconcentration, a strategy that comes with a level of risk beyond what is appropriate for many investors’ financial goals.

Investors who rely on brokers for recommendations may be able to recoup their losses by pursuing FINRA arbitration.

Background Information

Kenneth Munao has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination

Kenneth Munao is a registered broker in 40 states and a registered investment adviser in Illinois and Texas.

He has also worked for Morgan Stanley & Company (CRD#:8209) and Morgan Stanley (CRD#:7556).

Kurta Law Can Help

If you worked with Kenneth Munao and you have concerns about your investments, please contact us today at 877-600-0098 or 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.