Compliance

04:54 PM
Connect Directly
Facebook
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Regulators slap Morgan Stanley with another $7.5 million fine

Morgan Stanley has agreed to pay a $7.5 million fine to settle charges that over a five year period it provided customers with insufficient written trade confirmations for municipal securities and bonds, the Securities and Exchange Commission (SEC) said. It is the second, unrelated but substantial fine that Morgan Stanley has settled in less than two weeks.

Morgan Stanley has agreed to pay a $7.5 million fine to settle charges that over a five year period it provided customers with insufficient written trade confirmations for municipal securities and bonds, the Securities and Exchange Commission (SEC) said.From 2000 to 2005 Morgan Stanley Dean Witter, Inc, a subsidiary of Morgan Stanley, gave customers trade confirmations that had missing or incorrect information relating to yield, call data and other bond features, the SEC said.

In addition to the fine, the SEC ordered Morgan Stanley to retain an independent consultant to review its policies and procedures.

This is the second, unrelated but substantial fine that Morgan Stanley has settled with authorities in less than two weeks.

In late September, Morgan Stanley agreed to pay $12.5 million to resolve charges pressed by FINRA (formerly NASD) for failing to produce pre-9/11 e-mails to regulators and investor plaintiffs.

The firm had previously claimed on numerous occasions that the destruction of its email servers in the Sept. 11, 2001 terrorist attacks on New York's World Trade Center had resulted in the loss of all pre-9/11 email.

FINRA found those statements to be "not true".Morgan Stanley has agreed to pay a $7.5 million fine to settle charges that over a five year period it provided customers with insufficient written trade confirmations for municipal securities and bonds, the Securities and Exchange Commission (SEC) said. It is the second, unrelated but substantial fine that Morgan Stanley has settled in less than two weeks. Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8, October 2014
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
Video
Stressed Out by Compliance, Reputational Damage & Fines?
Stressed Out by Compliance, Reputational Damage & Fines?
Financial services executives are living in a "regulatory pressure cooker." Here's how executives are preparing for the new compliance requirements.