Simon Petro: Suitability Complaint Against Morgan Stanley Advisor

Roseville, California financial advisor Simon Petro (CRD# 6899791) recently received an investor complaint alleging that his advice resulted in damages. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Morgan Stanley.

Mr. Petro’s BrokerCheck report discloses one investor complaint. Filed in January 2026, it alleges that as a representative of Morgan Stanley, he recommended a “delta shift option strategy” that was unsuitable for the customer’s concentrated stock position. The pending complaint alleges unspecified damages.

For reference, “concentration,” also known as “over-concentration” or “lack of diversification,” is described by FINRA’s investor resources as akin to putting too many eggs in one basket. To avoid the risks of over-concentration, FINRA recommends investors diversify across and within major asset classes, regularly rebalance their portfolios, closely examine the underlying stocks or bonds in the mutual funds and exchange-traded funds in their portfolios, and keep vigilant track of their investments’ liquidity.

FINRA’s suitability standard stipulates that stockbrokers must “have a reasonable basis to believe” that the investment products and strategies they recommend to their clients are appropriate, or suitable, for a client’s background and objectives. FINRA Rule 2111, and later the SEC’s Regulation Best Interest, specifies that brokers must base their determinations regarding an investment’s suitability “on the information obtained through reasonable diligence of the firm or associated person to ascertain the customer’s investment profile.” That profile includes the customer’s age, risk tolerance, liquidity needs, tax status, net worth, and more. “A broker’s ‘recommendation,’ which is based on the facts and circumstances of a particular case, is the triggering event for application of the rule,” the rule states.

According to the Financial Industry Regulatory Authority, Simon Petro holds seven years of securities industry experience. Based in Roseville, California, he has been registered as a broker and an investment advisor with Morgan Stanley since 2018. His credentials include the passage of three securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Combined State Law Examination, or Series 66; and the General Securities Representative Examination, or Series 7. He holds 53 state licenses. (Information current as of March 22, 2026.)

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