Matthew Shaughnessy Alleged Purchased Unsuitable UIT for Client

Matthew Shaughnessy (CRD #: 2457058), a broker registered with Ameriprise Financial Services, allegedly executed an unsuitable and unauthorized transaction, according to his BrokerCheck record, accessed on May 25, 2023. Read on to learn more about his alleged conduct as a broker.

Investor Dispute

In a dispute filed on March 23, 2023, an investor alleged that Matthew Shaughnessy executed an unauthorized and unsuitable purchase of a Unit Investment Trust (UIT) and misrepresented its provisions. The client sought $175,000 in damages but the firm denied the dispute.

However, investors should know that firms can deny disputes without an external review. Investors can still pursue FINRA arbitration after a denial and may be able to recover their losses.

FINRA Rule 3260

FINRA Rule 3260 prohibits brokers from conducting discretionary trading outside discretionary accounts, pre-approved for discretionary trading by the firm and the client.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must take into account an investor’s tax status, risk tolerance, and other information described in their profile.

Investors who rely on brokers for investment recommendations can potentially recover their losses by seeking out FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of deception, manipulation, and other fraudulent means of influencing investors’ decisions. Misrepresenting an investment’s fees, requirements, or other relevant information violates this rule.

What are UITs?

Unit Investment Trusts (UITs) operate similarly to mutual funds, but lock in their investments until maturity and are not actively managed. However, the lack of liquidity and other risks associated with UITs may make them unsuitable for many investors.

Background Information

Matthew Shaughnessy has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 9 – General Securities Sales Supervisor – Options Module Examination

Matthew Shaughnessy is a registered broker in 23 states and a registered investment adviser in Nevada.

He has also worked for the following firms:

• UBS Financial Services (CRD#:8174)
• Morgan Stanley & Company (CRD#:8209)
• Morgan Stanley (CRD#:7556)
• Salomon Smith Barney (CRD#:7059)
• Piper Jaffray (CRD#:665)

Kurta Law Can Help

If you worked with Matthew Shaughnessy 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.