Shelley Bennett Allegedly Purchased Unsuitable Investment for Client

Shelley Bennett (CRD #: 5899626), a broker registered with Morgan Stanley, is the subject of a pending dispute, according to her BrokerCheck record, accessed on August 19, 2022. If you have questions about Shelley Bennett’s conduct as a broker, keep reading.

Investor Dispute

On May 11, 2022, an investor alleged that Shelley Bennett purchased an unsuitable closed-end fund in 2021. This dispute is pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must use the information described in the investor’s profile, such as their tax status, risk tolerance, and age.

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

What is a closed-end fund?

A closed-end fund is a company that uses an initial public offering (IPO) to raise money, invests that money following the fund manager’s investment strategy, and pays returns to shareholders according to those investments’ performance. These funds are “closed” because they typically do not sell additional shares after the IPO ends.

However, closed-end funds may invest in illiquid securities, execute a high-risk investment strategy, or expose investors to other risks.

Background Information

Shelley Bennett has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 3 – National Commodity Futures Examination
• Series 7 – General Securities Representative Examination

Shelley Bennett is a registered broker in 35 states, the District of Columbia, and the Virgin Islands. She is also a registered investment adviser in North Carolina and Texas.

Kurta Law Can Help

If you worked with Shelley Bennett 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 the firm only earns a fee if our securities attorneys recover money on your behalf.