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TIAA-CREF, Morgan Stanley, Wachovia -- FINRA arbitrations and settlements

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Aug 11, 2010 12:56 pm
 TIAA-CREF and Wachovia in 529 Plan FINRA Arbitration 

In a Statement of Claim filed in November 2009, Claimant Peter Levine alleged that Respondents TIAA-CREF Individual and Institutional Services, LLC and Wachovia Securities Inc. failed to follow instructions to transfer funds pertaining to a TIAA-CREF 529 mutual fund.

A 529 plan (also known as a "qualified tuition plan") is a tax-advantaged savings plan designed to encourage saving for future college costs. Pursuant to Section 529 of the Internal Revenue Code, these plans are sponsored by states, state agencies, or educational institutions, and are offered in the form of either a pre-paid tuition plan or a college savings plans.

In May 2009, Claimant withdrew his claims against Respondent TIAA-CREF. In the Matter of the Arbitration Between Peter Levine, Claimant, versus TIAA-CREF Individual and Institutional Services, LLC and Wachovia Securities Inc., Respondents. (FINRA Arbitration #09-06730, August 4, 2010).

 The FINRA Arbitrator found Respondent Wachovia Securities Inc. liable and ordered the firm to pay to Claimant $20,155.94 in compensatory damages, and to reimuburse Claimant $212.50 in FINRA filing fees. Readers of BrokeAndBroker may recall the following January 2010 article involving TIAA-CREF:
Customer Complaint Problems at TIAA-CREFWritten: January 20, 2010 = = = = = = = = = = = = = = = = = = = = = = = = = = = = =

Don't Miss the BrokeAndBroker Blog Coverage of the
FINRA / Morgan Stanley Settlement:

Morgan Stanley Agrees to $800,000 Research Report Fine August 10, 2010

In a Press Release titled: FINRA Fines Morgan Stanley $800,000 for Deficient Conflict of Interest Disclosures in Equity Research Reports and Public Appearances by Research Analysts / Firm Also Violated 2003 Research Analyst Settlement at, the Financial Industry Regulatory Authority (FINRA) announced on August 10, 2010, that it has censured and fined Morgan Stanley & Co., Inc. $800,000 for failing to make public disclosures required by FINRA's rules governing research analyst conflicts of interest. The firm also failed to comply with a key provision of the 2003 Research Analyst Settlement by failing to disclose the availability of independent research in customer account statements. In addition to the censure and fine, Morgan Stanley must review a sample of its research reports and certify to FINRA that they comply with FINRA's research analyst conflict-of-interest rules. These reviews and certifications must take place every six months for two years.