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 13-Jan-2017
Initial Filing Format Administrative Action
File Number 3-17773
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4), 204(a) Advisers Act; Rule 206(4)-2, 206(4)-7, 204-2(a)(1), 204-2(e)(1) Advisers Act

Resolutions

First Resolution Date 13-Jan-2017
Headline Total Penalty and Disgorgement $13,000,000

Related Documents:

2017-12 13-Jan-2017 Press Release--Administrative Proceeding
Morgan Stanley Paying $13 Million Penalty for Overbilling Clients and Violating Custody Rule
On January 13, 2017, the SEC announce in a press release a settled order against Morgan Stanley Smith Barney. According to the SEC: Morgan Stanley "overbilled investment advisory clients due to coding and other billing system errors. The firm also violated the custody rule pertaining to annual surprise examinations."
34-79794 13-Jan-2017 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On January 13, 2017, the SEC instituted a settled proceeding against Morgan Stanley Smith Barney, LLC (MSSB). According to the SEC: "These proceedings arise out of errors by MSSB in advisory client fee billing, custody examination violations, and books and records violations under the Advisers Act."