Former Morgan Stanley rep fined for concealing athlete management business

Former Morgan Stanley rep fined for concealing athlete management business
Finra fines Ken Kavanagh $25,000 and suspends him for 18 months over outside activities
AUG 06, 2019

The Financial Industry Regulatory Authority Inc. has fined former Morgan Stanley broker Ken Kavanagh $25,000 and suspended him for 18 months for running a business managing the personal affairs of professional athletes and concealing the business from his employer. (More: What advisers need to know to serve professional athletes) Mr. Kavanagh, who resigned from Morgan Stanley in April 2018 after 16 years with the firm and a predecessor, is not currently employed in the securities business. From 2007 to 2018, Mr. Kavanagh engaged in outside business activities without providing prior written notice to Morgan Stanley, which was a violation on Finra's rules, according to the regulator's letter of acceptance, waiver and consent. Specifically, he managed the personal affairs of more than 40 professional athletes who were both his and the firm's clients, and received approximately $5 million in fees, according to Finra. Kavanagh also falsely attested on six firm questionnaires that he was not involved with any outside business activities, Finra stated. The management services provided by Mr. Kavanagh included coordinating transportation and housing, making dinner and travel arrangements, recommending individuals to prepare wills and tax returns, and coordinating payment for items such as clothing, automobiles, insurance, and other personal expenses, Finra noted.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.