When Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, “Morgan Stanley”) provide “investment advice” to you regarding a Retirement Account*, Morgan Stanley is a “fiduciary” as those terms are defined under Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986 (the “Code”), as applicable. When Morgan Stanley provides you with investment education, takes orders from you on an unsolicited basis or otherwise does not provide “investment advice” to you, Morgan Stanley will not be considered a “fiduciary” under ERISA and/or the Code.
Morgan Stanley provides “investment advice” as defined under ERISA and the Code when Morgan Stanley
- renders advice (a) as to the value of securities or other property, or makes recommendations as to the advisability of investing in, purchasing, or selling securities or other property, (b) on a regular basis, (c) pursuant to a mutual agreement, arrangement, or understanding with the Retirement Account owner or fiduciary, that (d) the advice will serve as a primary basis for investment decisions with respect to the Retirement Account assets, and that (e) the advice will be individualized based on the particular needs of the Retirement Account; and
- receives a fee or other compensation (direct or indirect) for such advice.
*Retirement Account means any Individual Retirement Account (“IRA”), Roth IRA, Health Savings Account, Coverdell Education Savings Account, Archer Medical Savings Account, a Plan covered by ERISA, or a plan described in section 4975(e)(1)(A) of the Code.