CUSTOMER ALLEGES SWITCHING FROM A FIXED ANNUITY WITH NO SURRENDER PENALTY TO ONE WITH A LONG SURRENDER PENALTY WAS NOT SUITABLE FOR HER ACCOUNT. NO DATES SPECIFIED. ALLEGED DAMAGES UNSPECIFIED, BUT ESTIMATED TO BE OVER $5,000.

THE FIRM MAINTAINS THE POSITION THAT THIS COMPLAINT IS WITHOUT MERIT. THE CLIENT'S ALLEGATIONS COME TWO YEARS AFTER THE EXCHANGE IN QUESTION AND AFTER A TRANSFER TO ANOTHER FIRM. THE CLIENT WAS WARNED BY HER FINANCIAL ADVISOR OF THE SURRENDER CHARGES AT THE TIME OF THE EXCHANGE. SHE LIQUIDATED THE FIXED ANNUITY TO CONDUCT A 1035 EXCHANGE INTO A VARIABLE ANNUITY UNDER THE ADVISEMENT OF A DIFFERENT FINANCIAL CONSULTANT AT ANOTHER FIRM. THE FIRM BELIEVES THE 1035 EXCHANGE AT MORGAN STANLEY WAS SUITABLE FOR THE CLIENT AT THE TIME OF THE RECOMMENDATION AND MET THE CLIENT'S FINANCIAL NEEDS.