Arun Kumar Aggarwal, of Raleigh, North Carolina, a stockbroker registered with Morgan Stanley, has been fined $7,500.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Aggarwal exercised discretion in a customer’s account and caused inaccurate recordkeeping at the securities broker dealer. Letter of Acceptance, Waiver, and Consent No. 2022076586001 (October 11, 2023).
According to the AWC, Aggarwal exercised discretionary authority without prior written authorization in a customer’s account. This occurred between June 2021 and September 2022, involving 163 trades. Although the customer was aware of the stockbroker’s trading, they had not provided written consent for this discretion, and Morgan Stanley did not classify the account as discretionary. Consequently, Aggarwal violated FINRA Rules 2010 and 3260(b).
Additionally, Aggarwal incorrectly marked these 163 discretionary trades as unsolicited, leading to Morgan Stanley maintaining inaccurate books and records. Therefore, he violated FINRA Rules 4511 and 2010.
Aggarwal was associated with Morgan Stanley in Raleigh, North Carolina, from June 1, 2009, to October 18, 2022. His association with Morgan Stanley ended when the securities broker dealer filed a Uniform Termination Notice for Securities Industry Registration (Form U5) on October 18, 2022, indicating that Aggarwal was discharged for unauthorized trading and for issues relating to the securities broker dealer’s investigation.
