Patrick Morris, a broker registered with Equitable Advisors, has recently emerged as the focal point of an investor dispute. According to his BrokerCheck record available on February 28, 2024, Morris is involved in an allegation of having recommended an unsuitable real estate investment trust (REIT) to an investor.
An Overview of REITs
For those not in the know, REITs help investors make returns from an entire pool of real estate without being directly embroiled in the hustle and bustle of property management. But, a word of warning – REITs typically lack liquidity. This inaccessibility makes them unsuitable for many investors, especially non-traded REITs that stay away from public exchange and are challenging, if not implausible, to sell.
The Intricacy of FINRA Rule 2111
Speaking of suitability, let’s dive into FINRA Rule 2111, which outlines that suitable investments are those securities that slot-in seamless with an investor’s profile. This profile considers various crucial factors, including the investor’s age, risk tolerance, tax status, investment experience, and financial targets. If an investment recommendation doesn’t take these elements into account, it may be classified as an unsuitable investment.
But wait – this isn’t Morris’s first rodeo with investor disputes. He has four prior disputes on his record.
In one significant dispute from March 15, 2016, a Power of Attorney alleged that her husband, due to his medical condition, could not comprehend the variable annuity he bought. Although the dispute was denied, it’s essential to note that firms can do so without any external review. In such scenarios, investors still have the possibility of recovering their losses via FINRA arbitration.
Variable Annuities Explained
Let’s also touch upon Variable Annuities, which are pretty intricate investments. They exist as insurance products that come with an attached investment component. They can become problematic due to high fees, surrender charges, and potential tax liabilities. Also, the risk associated with these types of illiquid investments means many investors find them unsuitable.
Now, let’s circle back to our guy – Patrick Morris, who has passed on numerous exams, including:
- Series 65 Uniform Investment Adviser Law Examination
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
- Series 6 Investment Company Products / Variable Contracts Representative Examination
- Series 26 Investment Company Products / Variable Contracts Principal Examination
Morris is currently a registered broker in 14 states. In his 42-year career, he has been affiliated with Equitable Advisors, The Equitable Life Assurance Society of the United States, and H.C. Copeland and Associates Equities.
For anyone concerned about their investments with Patrick Morris, it would be wise to seek help from an expert. Many law firms provide free consultations and take on such cases on a contingency basis, ensuring their attorneys’ fees come out of any recovered amounts. Remember, unchecked securities fraud can significantly impact your financial health, and the sooner you kickstart the recovery process, the better it will be.