Morgan Stanley Hit With $15M Fine After Advisers Take Millions
The U.S. Securities and Exchange Commission said that Morgan Stanley failed to detect hundreds of unauthorized transfers that occurred between May 2015 and July 2022 and to “reasonably supervise” its employees.
December 10, 2024 at 06:22 PM
2 minute read
Morgan Stanley was hit with a $15 million fine from the U.S. Securities and Exchange Commission after four advisors were found to have stolen millions of dollars worth of client funds.
The SEC said in its Monday order that Morgan Stanley’s failure to detect hundreds of unauthorized transfers that occurred between May 2015 and July 2022, and to “reasonably supervise” its employees, amounted to violations of the Investment Advisers Act of 1940.
“Safeguarding investor assets is a fundamental duty of every financial services firm, but [Morgan Stanley]’s supervisory and compliance policy failures let its financial advisors make hundreds of unauthorized transfers from their customer and client accounts and put many other such accounts at significant risk of harm,” Sanjay Wadhwa, the acting director of the SEC’s enforcement division, said in a Monday statement.
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