Defendant Name: Morgan Stanley Smith Barney LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Morgan Stanley
SIC Code: 6712
CUSIP: 61744644

Initial Case Details

Legal Case Name In the Matter of Morgan Stanley Smith Barney LLC
First Document Date 07-Nov-2019
Initial Filing Format Administrative Action
File Number 3-19599
Allegation Type Broker Dealer

Violations Alleged

Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)

Resolutions

First Resolution Date 07-Nov-2019
Headline Total Penalty and Disgorgement $1,545,768

Related Documents:

33-10726 07-Nov-2019 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, Section 15(b) 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 November 7, 2019, the SEC instituted settled administrative and cease-and-desist proceedings against Morgan Stanley Smith Barney LLC ("MSSB" or "Respondent"). The SEC stated: "MSSB recommended and sold . . . Eligible Customers more expensive share classes when less expensive share classes were available, contrary to MSSB's representations to those Eligible Customers. MSSB's recommendations of more expensive share classes negatively impacted the overall return on the Eligible Customers' investments. In addition, MSSB received greater compensation from the Eligible Customers' purchases when selecting the more expensive share class. MSSB has provided remediation to impacted customers."
33-10726-s 07-Nov-2019 Administrative Summary
SEC Charges Morgan Stanley Smith Barney in Connection with Mutual Fund Sales to Retirement and Charitable Accounts
The SEC stated: "Morgan Stanley Smith Barney LLC (MSSB), a registered broker-dealer and investment adviser located in Purchase, New York, agreed to settle charges that it misrepresented its share class selection process in connection with investment recommendations made to certain retail retirement and charitable organization brokerage customers."