David Lau (also known as David Luu), of Santa Rosa, California, a stockbroker registered with Morgan Stanley, has been fined $6,000.00 and suspended for twenty days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Lau engaged in unauthorized trading. Letter of Acceptance, Waiver, and Consent No. 2021070917301 (November 18, 2022).
According to the AWC, Morgan Stanley’s written supervisory procedures required Lau to get prior written permission from the securities broker dealer and the customers to exercise discretion. From March 2020 through October 2020, during the time that he was registered with Morgan Stanley, Lau executed 194 discretionary trades in the accounts of 5 customers without first receiving written authorization from Morgan Stanley or the affected customers. Therefore, Lau violated FINRA Rules 2010 and 3260(b).
On March 3, 2021, Morgan Stanley discharged Lau based upon allegations that Lau failed to comply with its trading policies.