Morgan Stanley’s Frank AuYeung Faces Structured Product Complaint

A recent investor complaint against Cupertino financial advisor Frank AuYeung (CRD# 2256932) alleges excessive trading of structured products. Records provided by the Financial Industry Regulatory Authority indicate that he is a broker and an investment advisor with Morgan Stanley, whose website describes him as a member of the AuYeung Wealth Management Group.

Mr. AuYeung’s BrokerCheck report discloses one investor complaint. Filed in February 2023, it alleges that as a representative of Morgan Stanley, he excessively traded structured products and other investments in the customer’s accounts. The pending complaint alleges unspecified damages.

For reference, a FINRA resource released in 2020 describes excessive trading, also known as quantitative unsuitability, as “the situation where a broker makes a large number of trades in a customer’s account not to benefit the customer but to generate commissions for the broker.” It is similar to but distinct from churning, a more severe form of excessive trading in which a broker conducts the allegedly excessive trades “with either an intent to defraud or with reckless disregard for the customer’s interests.” More information on potential red flags of excessive trading can be found via FINRA.

According to the Financial Industry Regulatory Authority, Frank AuYeung holds 30 years of securities industry experience. Based in Cupertino, California, he has been a broker and an investment advisor with Morgan Stanley since 2012. His past registrations include Wells Fargo Advisors (San Jose, California; 2011-2012), Wells Fargo Investments (Cupertino, California; 2004-2011), Banc of America Investment Services (San Jose, California; 1998-2004), BA Investment Services, Citicorp Investment Services, and Laney & Company. His credentials include the passage of five securities industry qualifying exams: the General Securities Principal Examination, or Series 24; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. He holds licenses in California, Florida, Georgia, Hawaii, Illinois, Maryland, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, South Dakota, Texas, Virginia, and Washington. (Information current as of March 6, 2023.)

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