Morgan Stanley Pays $3.6 Million Penalty In Connection to SEC Charges

Publicly available records provided by the Securities and Exchange Commission (SEC) and accessed on July 3, 2018 indicate that Morgan Stanley Smith Barney in connection to allegations it failed to protect against the misuse or misappropriation of client funds by its personnel. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Morgan Stanley Smith Barney. According to the SEC’s order, Morgan Stanley Smith Barney failed to maintain reasonably designed policies and procedures that would have prevented advisory represents from participating in the misuse or misappropriation of funds from customer accounts. The order states that from “at least 2009 until the present,” the firm allowed its investment adviser representatives as well as its registered representatives “to initiate third-party disbursements from client accounts of outgoing wire transfers and journals of up to $100,000 per day per account based on the FA’s…

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