The Silich Group Morgan Stanley – A Sham Operation
The Silich Group Morgan Stanley is a financial advisory firm you should avoid at all costs. They have faced multiple legal disputes in the past for unsuitability and misrepresentation. Furthermore, the firm continues to put its clients in danger through its problematic provisions.
This is just the tip of the iceberg, the Silich Group Morgan Stanley has a plethora of more issues. In the following points, you’ll learn about these issues and understand why you should avoid dealing with them.
About the Silich Group Morgan Stanley
The Silich Group Morgan Stanley is a wealth management firm in Chicago, Illinois. Their address is 233 S Wacker Dr Ste 8600, Chicago, IL 60606, US and their contact number is 312-443-6200.
The firm claims to provide its clients with comprehensive wealth strategies so they can achieve crucial financial goals. They also claim to be committed to delivering first-class service and knowledge to their clients. The firm claims that it formulates strategies according to its clients’ requirements.
Some of the many services available here include:
- Wealth management
- Sustainable investing
- Cash management
- Trust services
- 401(k) rollovers
- Philanthropic management
- Estate planning strategies
- Planning for education funding
- Financial planning
- Stock option plans
- Professional portfolio management
Joseph N Silich is the managing director of the Silich Group. Apart from him, other notable people at this firm include Sabina A Sewillo, Kathy Figus, and Richard Rios.
On paper, the Silich Group Morgan Stanley seems like a genuine and credible advisory firm. However, the firm is laden with issues it’s trying to hide from investors. For example, it allows itself to charge as much as it wants through hidden fees. You’ll learn about such provisions in the next section of this review:
Legal Disputes and Shady Provisions of the Silich Group Morgan Stanley
The Silich Group Morgan Stanley makes multiple bold claims about its accolades and awards. It flaunts the achievements of its leaders without highlighting the multiple legal disputes they have faced from their clients.
A little research into this firm’s leadership reveals that their managing director has received several legal complaints from disgruntled clients. While the firm would gladly tell its clients about its achievements, it tries its best to hide these disputes from the eyes of the investors.
According to the FINRA BrokerCheck listing of Joseph Silich, he has faced two legal disputes from his clients.
The first dispute occurred in 2009. Here, the client alleged breach of fiduciary duty, suitability, omissions, misrepresentations, negligence, and fraud. They requested $93,245.69 in damages.
The claim was denied.
Silich’s second dispute occurred in 2021. Here, the client alleged, inter alia, failure to follow instructions with respect to agreed upon strategy in their management accounts not being implemented. They didn’t specify any damages.
The firm denied the allegations. They claimed that the firm maintained all adequate communication with the client. This is a common tactic among shady advisors as they hide their problematic provisions in the fine print.
Another advisor who uses this tactic to get away with unsuitable recommendations and misrepresentation is Chris Leeper Raymond James.
Charging 12b-1 Fees
Apart from having a problematic history, the Silich Group Morgan Stanley also recommends investments that charge 12b-1 fees. The 12b-1 fee is a marketing fee which companies pay to brokers for promoting their products.
The securities that charge 12b-1 fee don’t offer anything better from the investments that don’t charge this fee. It only increases the cost of the investment, which can put a dent on your wallet.
Furthermore, the 12b-1 fee goes straight into the advisor’s pocket. So, advisors tend to prefer such investments over others even if they are unsuitable for the client.
Another issue in the 12b-1 fee is that it is a percentage fee. Hence, how much you pay depends on the size of your portfolio. Due to this reason, investments that charge 12b-1 fee are quite detrimental for investors with significant portfolios. It compounds over time as well, making it unsuitable for investors who want to earn long-term returns.
Selling Proprietary Securities
The Silich Group Morgan Stanley recommends proprietary investments and products from its affiliates. These investments generate commissions for the firm. Additionally, some of these investments generate higher commissions than others.
Hence, the advisors have monetary incentive for giving preferential treatment to some investments. Selling affiliated investments restricts the amount of options an advisor can offer to his clients.
They have no reason to recommend an investment that doesn’t generate any commissions.
Hence, you can’t trust the recommendations of such advisors. They may recommend you investments simply on the basis of how much commission they generate.
Should You Trust This Firm?
In the end, it all comes to if you can trust this financial advisory firm with your future and your investments and the answer is, you can’t.
They have too many conflicts of interest in their disclosures which make it easy for the firm to ignore its clients’ interests. There’s a good chance that they will take advantage of you. Hence, avoid them.
The Silich Group Morgan Stanley is a terrible organization which has no care for its clients. Their history and disclosures are filled with red flags. Avoid dealing with such a terrible service provider.
- Questionable leadership
- Charging 12b-1 fees
- Selling proprietary investments