Defendant Name:
Morgan Stanley Smith Barney LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Morgan Stanley
SIC Code:
6211
CUSIP:
61744644
Document Reference:
IA-4649
Document Details
Legal Case Name
In the Matter of Morgan Stanley Smith Barney, LLC
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to 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
Document Date
14-Feb-2017
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On February 14, 2017 the SEC instituted a settled order against Morgan Stanley Smith Barney, LLC. According to the SEC: "From mid-2010 to mid-2015, Morgan Stanley Smith Barney, LLC ("MSSB") solicited advisory clients with over 600 non-discretionary advisory accounts to purchase single-inverse exchange-traded funds ("ETFs"), without implementing MSSB's written compliance policies and procedures, which were designed to prevent violations of the of the Advisers Act, including its antifraud provisions. [...] MSSB's failure to adequately implement its compliance policies and procedures was a violation of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Civil Penalty
Individual:
$8,000,000.00
Shared:
