Bob Daly: FINRA Investigates Ex-Morgan Stanley Advisor

Former Los Angeles financial advisor Bob Daly (CRD# 3111426) was recently sanctioned by FINRA in connection with alleged rule violations. Financial Industry Regulatory Authority records show that he was most recently registered as a broker and an investment advisor with Xtellus Capital Partners, having previously been registered with Morgan Stanley.

Mr. Daly’s BrokerCheck report discloses the FINRA sanction against him. Filed in October 2024, it alleged that he refused to produce information and documents that FINRA requested. According to the regulator, it requested the documents as part of an inquiry “that originated from a regulatory tip it received related to possible undisclosed private securities transactions.” Finding that his refusal violated industry rules, FINRA permanently barred him from registering with any member firm in any capacity.

Mr. Daly’s BrokerCheck report discloses two investor complaints. The most recent, filed in September 2024, alleges that he recommended unsuitable investments in First Republic Bank shares. The pending complaint alleges unspecified damages.

An earlier investor complaint, filed in July 2024, alleged that he misrepresented the liquidity restrictions on alternative investments. The complaint alleged unspecified damages and was denied by the firm.

According to the Financial Industry Regulatory Authority, Bob Daly holds 25 years of securities industry experience. Previously based in New York City, he was registered with Xtellus Capital Partners from 2023 until 2024. His past registrations include Morgan Stanley (Los Angeles, California; 2016-2023), JP Morgan Securities (Los Angeles, California; 2009-2016), UBS Financial Services (Beverly Hills, California; 2003-2009), and Bear Stearns & Company (New York, New York; 1998-2003). His credentials include the passage of four securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. He is no longer licensed with any state or firm, having been barred from acting as a broker. (Information current as of October 12, 2024.)

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