Compliance December 27, 2010

401(k) Participant Wins FINRA Arbitration

A 401(k) participant claimed Morgan Stanley caused significant losses to his account after his request to move money out of the stock market was not acted upon. 
Reported by

The Financial Industry Regulatory Authority (FINRA) awarded Robert Bryant $80,504, as well as $1,500 in costs and $26,566 in lawyers’ fees. The awards were levied against Morgan Stanley, which managed the 401(k) plan for Bryant’s employer; broker James Miller was not named in the claim.

According to the FINRA document, Bryant accused Miller of rebuffing his “concerns” that the stock market was too risky for his 401(k) assets and that the best move was to transfer assets into cash holdings. Miller argued that Bryant should stay in the stock market. Morgan Stanley was liable for not effectively supervising Miller, Bryant charged.

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Among other things, Morgan Stanley argued that Bryant’s losses were his own fault and that the company was not negligent in its dealings with Bryant.

The FINRA document is at http://finraawardsonline.finra.org/turing.aspx?doc=44949.

Products December 27, 2010

Web Site Highlights Benefits for Boomers

The National Council on Aging (NCOA) has created the site for people turning 65 years old who want more information about benefits for which they are now eligible.
Reported by

NCOA says its BenefitsCheckUp site can be used as a resource to learn about more than 2,000 federal, state, and local benefits programs.

“In this day and age where retirement doesn’t come cheap or easy, it helps to have a resource like BenefitsCheckUp to serve as a guide for programs that may provide help during these years,” said Stuart Spector, senior vice president at NCOA, in the news release. “Signing up for the appropriate benefits in a timely fashion can result in a happier retirement.”

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The announcement said baby boomers can also check to see if they are eligible for additional benefits that help pay for health care, energy bills, food, and other household costs.

The Web site is at www.benefitscheck.org.

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