Defendant Name:
Morgan Stanley Smith Barney LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Morgan Stanley
SIC Code:
6211
CUSIP:
61744644
Initial Case Details
Legal Case Name
In the Matter of Morgan Stanley Smith Barney LLC
First Document Date
24-Jan-2017
Initial Filing Format
Administrative Action
File Number
3-17809
Allegation Type
Broker Dealer
Resolutions
First Resolution Date
24-Jan-2017
Headline Total Penalty and Disgorgement
$2,963,736
Related Documents:
33-10290
24-Jan-2017
Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing a Cease-and-Desist Order
On January 24, 2017 the SEC instituted a settled proceeding against Morgan Stanley Smith Barney LLC. According to the SEC: "This proceeding relates to a foreign exchange trading program developed by
Citigroup Global Markets, Inc. (“CGMI”) that was known as “CitiFX Alpha” and that was sold
through certain MSSB financial advisors between August 2010 and July 2011."
Morgan Stanley, Citigroup Charged With Misleading Investors About Forex Trading Program
On January 24, 2017 the SEC announced that announced that "Morgan Stanley Smith Barney and Citigroup Global Markets have agreed to pay more than $2.96 million
apiece to settle charges that they made false and misleading statements about a foreign exchange trading program they sold to investors."
34-81633
14-Sep-2017
Administrative Proceeding
Corrected Order Appointing Tax Administrator
According to the SEC: "Miller Kaplan, pursuant to and in accordance with the Omnibus Order, is appointed the Tax Administrator for the QSF in the above-referenced proceeding."
Order Consolidating Fair Funds
The Commission ordered that: "the Fair Funds created pursuant to the Orders are consolidated into a single Fair Fund, the Morgan Stanley Smith Barney Fair Fund, for purposes of distribution to harmed investors."
Notice of Proposed Plan of Distribution and Opportunity for Comment
The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the "Proposed Plan") for the distribution of monies paid in the above-captioned matters."
Proposed Plan of Distribution
The Commission stated: "The Division of Enforcement submits this Proposed Plan of Distribution (the “Plan”) to the United States Securities and Exchange Commission (the “Commission”) . . . . This Plan provides for the distribution of a Fair Fund (the “Fair Fund”) comprised of disgorgement, prejudgment interest, and civil money penalties paid by Citigroup Global Markets, Inc. (“CGMI”) and Morgan Stanley Smith Barney LLC (“MSSB”) (collectively, the “Respondents”) in the above-captioned matters."
Order Approving Plan of Distribution
The Commission ordered: "the Proposed Plan is approved, and the approved Plan of Distribution shall be posted simultaneously with this order on the Commission’s website at www.sec.gov."
Plan of Distribution
The Commission stated: "The Division of Enforcement has prepared this Plan of Distribution (the “Plan”) to the United States Securities and Exchange Commission (the “Commission”) . . . . This Plan provides for the distribution of a Fair Fund (the “Fair Fund”) comprised of disgorgement, prejudgment interest, and civil money penalties paid by Citigroup Global Markets, Inc. (“CGMI”) and Morgan Stanley Smith Barney LLC (“MSSB”) (collectively, the “Respondents”) in the above-captioned matters."
Order Directing Disbursement of Fair Fund
The Commission ordered that: "the Commission staff shall direct the payment of $903,012.09 from the Fair Fund for distribution in accordance with the Plan."
