oreide Law Group is currently investigating claims by investors against Morgan Stanley involving the sale of the Morgan Stanley Cushing MLP High Income Exchange Traded Note.
ETNs are not be suitable for all investors. There are investors alleging that Morgan Stanley failed to disclose to clients the risk involved investing in this high-risk product. There are also claims of alleged unsuitably. Financial advisors/brokers have a fiduciary duty to their clients to disclose the risks involved with the products they are recommending. They must also do a due diligence on their clients to decide whether the investment is within the predetermined risk tolerance of the client.
According to Bloomberg, the Morgan Stanley Cushing MLP High Income ETN is an exchange-traded note issued by Morgan Stanley. The Notes provide investors with a cash payment at the scheduled maturity or early repurchase and variable coupon payments each quarter, in each case based on the performance of the underlying index, the Cushing MLP High Income Index.
On Morgan Stanley’s own website, these are some of the risks they list with the purchase of ETNs:
“Significant aspects of the tax treatment of the ETNs are uncertain.”
“The ETNs may be accelerated and mandatorily repurchased by the Issuer, resulting in a loss of some or all of your investment.”
“You will not know the Repurchase Amount that you will receive at the time you elect to request that we repurchase your ETNs.”
“The ETNs are unsecured debt obligations of Morgan Stanley and therefore are subject to the credit risk of Morgan Stanley.”
The Morgan Stanley Cushing MLP High Income ETN is currently trading at $6.75 per share, the Morgan Stanley Cushing MLP High Income ETN was trading at $19.27 in October of 2014 (which is an approximately 65% decline).
If your financial advisor/broker recommended that you invest in the Morgan Stanley Cushing MLP High Income ETN and you experienced financial losses due to their recommendation, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding a possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationally before FINRA and we operate on a contingency fee basis—no fee to you if no recovery.