Print

FORM ADV BROCHURE SUPPLEMENT


JANUARY 17, 2020

JOHN DAVID DUNNETTJR (CRD No: 2766654)

Doing Business As: JOHN DUNNETTJR

Branch Address: 400 CAPITOL MALL
SUITE 1900
SACRAMENTO, CA 95814

Contact Number: (888) 454-3965

Corporate Address: Morgan Stanley Smith Barney LLC
2000 Westchester Avenue
Purchase, New York 10577
 
Corporate Tel: (914) 225-1000

This brochure supplement provides information about JOHN DAVID DUNNETTJR that supplements the applicable Morgan Stanley Smith Barney LLC ("Morgan Stanley") ADV brochure. You should have received a copy of that brochure. Please contact a member of your Morgan Stanley team if you did not receive Morgan Stanley's brochure or if you have any questions.

Additional information about JOHN DAVID DUNNETTJR is available on the SEC's website at www.adviserinfo.sec.gov as well as the BrokerCheck website at https://brokercheck.finra.org.

*This brochure supplement is current as of the date stated above.

Educational Background and Business Experience

This section states your Financial Advisor's or Private Wealth Advisor's (collectively referred to as "Financial Advisor") formal education after high school, business background for the last five years and certain professional designations.

Name: JOHN DAVID DUNNETTJR (b. 1943)
 
Education: SACRAMENTO CC (BACHELOR OF SCIENCE)
PRE UNIVERSITY SCHOOL (DIPLOMA)

Business Background:
(Past Five Years)
01/01/2015–PRESENT MORGAN STANLEY PRIVATE BANK, N.A., FINANCIAL ADVISOR
06/01/2009 MORGAN STANLEY, FINANCIAL ADVISOR

Professional
Designation(s):
No professional designations to disclose

Disciplinary Information

This section describes certain legal or disciplinary events relating to your Financial Advisor, generally within the last ten years (e.g., certain findings by regulators in administrative proceedings, customer disputes, and criminal charges). Financial Advisors are required to comply with all applicable rules and regulations. They are also subject to internal policies and procedures under which they commit to working with integrity and high ethical standards at Morgan Stanley. However, Financial Advisors may have been subject to legal or disciplinary events and certain types of these events are disclosed in this section.

These disclosures are generally based on entries in the Financial Industry Regulatory Authority's ("FINRA") Central Registration Depository ("CRD"), which are in turn based on filings made by Morgan Stanley or others. Before reaching a conclusion regarding any of the information in this section, you should ask the Financial Advisor or his or her supervisor (see Supervision below) to clarify the specific event(s) listed, or to provide a response to any questions you may have. You may also call (800) 223-2440 for more information.

Disclosure details may be reported by more than one source (e.g., regulator, employer or Financial Advisor). When this occurs, all versions of the event appear in this brochure supplement. Also, some of the specific data fields in these disclosures may be blank if the information was not provided to the CRD.

No material legal or disciplinary events to disclose


Other Business Activities

This section provides information on businesses or occupations in which your Financial Advisor is involved, including registrations and other business interests. It also describes certain types of compensation received by Financial Advisors.

Investment-Related Businesses
Morgan Stanley is a registered broker-dealer. Your Financial Advisor is a registered representative of Morgan Stanley (in its capacity as a broker-dealer). Morgan Stanley is also a registered investment adviser. Morgan Stanley is qualified to offer you not only investment advisory products and services through advisory accounts but also various other investment products and services through brokerage accounts.

Your Financial Advisor is also registered with the Commodity Futures Trading Commission ("CFTC") as an associated person of Morgan Stanley. Morgan Stanley is registered with the CFTC as an Introducing Broker ("IB") and is a member of the National Futures Association ("NFA"). In its capacity as an IB, Morgan Stanley introduces futures customers to its affiliate Morgan Stanley & Co. LLC ("MS&Co."), a registered Futures Commission Merchant, where Morgan Stanley's futures customers' accounts are carried and cleared. Certain affiliates of Morgan Stanley are registered with the CFTC as Commodity Pool Operators and/or as Commodity Trading Advisors.

Compensation for Financial Advisors Who Provide Financial Advice and Make Recommendations Regarding Investment Products
Morgan Stanley pays Financial Advisor compensation in the form of cash or equity under various Morgan Stanley compensation programs. A Financial Advisor's eligibility to receive compensation above his or her base salary, and the amount of such compensation depends on various factors (including the revenue that the Financial Advisor generates for Morgan Stanley, by providing investment products and services to clients, length of service at Morgan Stanley, and length of experience in the industry).

Morgan Stanley also offers recruiting and retention packages to certain new or existing Financial Advisors. These packages can be substantial, and are generally based on the size of business serviced by the Financial Advisor at Morgan Stanley or at a prior firm. Such incentives may include sign-on bonuses and/or loan-bonus arrangements, equity awards, buyout of forfeited deferred compensation or retention arrangements, special commission arrangements, and supplemental bonuses. These incentives (other than sign-on bonuses and certain other arrangements) are typically contingent on, among other things, the Financial Advisor satisfying certain performance-based criteria, which may include client assets serviced by the Financial Advisor at Morgan Stanley and/or revenue generated by the Financial Advisor. If your Financial Advisor is joining Morgan Stanley from another firm, we encourage you to discuss the reasons your Financial Advisor decided to change firms, including whether your Financial Advisor has received a recruiting package. The transfer of your assets to Morgan Stanley may contribute to your Financial Advisor's ability to satisfy performance criteria and receive bonus payments.

When acting as a broker-dealer, Morgan Stanley receives transaction-based compensation, including commissions, markups/markdowns on principal transactions, and other compensation based on the sale of securities or other investment products (including distribution or service ("trail") fees from the sale of mutual funds). Morgan Stanley credits the Financial Advisor with a portion of the commissions, profits on principal trades, and other charges.

When acting as an IB, Morgan Stanley receives transaction-based commissions and other account-based or transaction fees relating to the purchase and sale of exchange-listed commodity futures contracts and options on futures contracts, and off-exchange commodities and currencies. Morgan Stanley also receives from MS&Co. some or all of the interest income earned from funds deposited with MS&Co. by Morgan Stanley–introduced futures customers. Morgan Stanley credits its Financial Advisors with a portion of the commissions and other account-based or transaction fees and also credits its Financial Advisors with a portion of interest income earned.

As a result of the compensation practices described above, your Financial Advisor has an incentive to recommend investment products based on the compensation he or she receives. Morgan Stanley and your Financial Advisor, as a result of the registrations described above, are qualified to offer you not only investment advisory products and services through advisory accounts, but also various other investment products and services through brokerage accounts. Morgan Stanley and your Financial Advisor are likely to earn more compensation if you invest through an advisory account than if you buy individual securities or other investment products through a brokerage account (although, in a brokerage account, you would not receive all the benefits available in an investment advisory account). Your Financial Advisor therefore has a financial incentive to recommend investment advisory products to you. We address these conflicts of interest by disclosing them to you and by requiring Financial Advisors and their supervisors to review your account at account opening to ensure that it is suitable for you in light of matters such as investment objectives and financial circumstances.

Other Business Activities
If your Financial Advisor is involved in other business activities not discussed above and the other business activities provide a substantial source of the Financial Advisor's income or involve a substantial amount of the Financial Advisor's time, they are listed below. Your Financial Advisor’s participation in the business activities listed below has been approved by Morgan Stanley managers. In approving these activities, managers consider, among other things, whether the activity would create an actual or potential conflict of interest, whether the time and effort involved in the activity is likely to compromise the Financial Advisor's ability to perform his or her job, and whether the activity will be viewed by customers or the public as part of the Financial Advisor's job at Morgan Stanley.

These disclosures are generally based on entries in FINRA's CRD, which are in turn based on filings made by Morgan Stanley or others. Some of these disclosures may relate to activities in which the Financial Advisor no longer engages.

No additional business activities to disclose


Additional Compensation

This section describes any economic benefit that a Financial Advisor may receive (other than from clients) for providing advisory services.

Financial Advisor Development Programs
Financial Advisors may qualify for advanced development programs provided by Morgan Stanley throughout the year (which may include travel and hotel benefits). Different programs have different eligibility criteria (based on, among other things, the amount of revenue a Financial Advisor generates for Morgan Stanley). Financial Advisors attending these programs must also have demonstrated leadership through best practices of wealth management, and have satisfied other performance, conduct and compliance standards. The programs are designed to enable Financial Advisors to obtain ideas from their peers and industry experts on innovation, investment excellence and business development.


Supervision

This section describes how Morgan Stanley monitors the advice provided by your Financial Advisor and identifies the person supervising your Financial Advisor's advisory activities.

Financial Advisors are responsible for reviewing accounts on a regular basis. The Financial Advisor's supervisor is primarily responsible for supervising these accounts. The supervisor uses various methods to supervise accounts, including reviews at account opening and reviews of client account activity and positions. In performing reviews, the supervisor considers, among other things, the client’'s investment objectives and financial circumstances.

To assist the supervisor in performing his or her duties, Morgan Stanley uses systems that enable supervisors to identify risks by conducting various analyses at the trade, account, Financial Advisor and branch office levels for certain advisory accounts. For example, these systems generate alerts for supervisors to review, enable supervisors to analyze trade patterns and create an audit trail of reviews.

Supervisor: DAVID LAWRENCE, COMPLEX MANAGER
Supervisor Tel: (800) 223-2440