Stephen Scott: Options Complaint Against Morgan Stanley Advisor

A recent investor complaint against San Antonio, Texas financial advisor Stephen Scott (CRD# 5553385) concerns an investment in an options strategy. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Morgan Stanley.

Mr. Scott’s BrokerCheck report discloses one investor complaint. Filed in March 2026, it alleges that as a representative of Morgan Stanley, he recommended a covered call options strategy that did not meet the customer’s investment objectives. The pending complaint alleges unspecified damages.

Investors should be aware that Rule 15l-1(a)(1) of the Securities and Exchange Act of 1934, also known as Regulation Best Interest, requires advisors like Mr. Scott to recommend only investments and strategies that are in their clients’ best interests. The rule states specifically that firms and their representatives must “act in the best interest of the retail customer at the time the recommendation is made, without placing the financial or other interest of the broker, dealer, or natural person who is an associated person of a broker or dealer making the recommendation ahead of the interest of the retail customer.” This rule is similar to FINRA’s suitability rule, which requires brokers to recommend investments that are in line with their customers’ background and objectives. They must conduct reasonable diligence to determine whether the investment is suitable for some investors, whether it is suitable for the specific investor, and, in cases where the advisor exercises discretion over trading in a customer’s account, they must conduct reasonable diligence to determine that a series of transactions is not unsuitable or excessive.

According to the Financial Industry Regulatory Authority, Stephen Scott holds 17 years of securities industry experience. Based in San Antonio, Texas, he has been registered as a broker and an investment advisor with Morgan Stanley since 2012. He was previously registered with AXA Advisors in San Antonio from 2008 until 2012. 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 31 state licenses. (Information current as of April 4, 2026.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.