James Gorman may be about to feel some pain in Massachusetts.
The New York Post reports that William Galvin, the Bay State’s top securities regulator, has launched an investigation of Gorman’s Morgan Stanley and its alleged loan sales contests,which posed apparent conflicts of interest with clients, the newspaper has learned.
Gorman’s bank created a pilot program that divided financial advisers into “teams” and offered them financial incentives for selling securities-based loans — an apparent regulatory no-no because it could benefit the broker more than the client, The Post first reported in March.
“We’re interested because we were the test zone for this,” Galvin, Secretary of Massachusetts, told The Post in a phone interview.
To access the complete New York Post article hit the link below: