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 17-Sep-2019
Initial Filing Format Administrative Action
File Number 3-19467
Allegation Type Municipal Securities & Public Pensions

Violations Alleged

Other
• Section 15B(c)(1) Exchange Act; Rules G-8, G-17, G-19, G-27 MSRB

Resolutions

First Resolution Date 17-Sep-2019
Headline Total Penalty and Disgorgement $225,000

Related Documents:

34-86988 17-Sep-2019 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b), 15B(c), and 21C of the Securities Exchange Act of 1934 and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On September 17, 2019, the SEC instituted settled administrative and cease and desist proceedings against Morgan Stanley Smith Barney, LLC ("MSSB"). The SEC stated: "This matter involves violations of Municipal Securities Rulemaking Board (“MSRB”) rules by MSSB. Between June 2013 and December 2017, MSSB recommended 135 “swap” transactions to its retail customers in which the customer sold one municipal bond while also purchasing another bond that was nearly identical to the bond sold or that otherwise appeared to provide no apparent economic benefit to the customer."
34-86988-s 17-Sep-2019 Administrative Summary
SEC Charges Morgan Stanley for Recommending Unsuitable Municipal Bond Transactions
The SEC "announced administrative and cease-and desist proceedings against Morgan Stanley Smith Barney LLC (Morgan Stanley), a registered broker dealer and investment adviser that is also registered with the Municipal Securities Rulemaking Board (MSRB), for allegedly recommending unsuitable municipal bond transactions to its customers."