Defendant Name:
Morgan Stanley Smith Barney LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Morgan Stanley
SIC Code:
6712
CUSIP:
61744644
Document Reference:
33-10726
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 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
Document Date
07-Nov-2019
Document Format
Administrative Proceeding
Allegation Type
Broker Dealer
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Disgorgement
Individual:
$42,389.41
Shared:
Civil Penalty
Individual:
$1,500,000.00
Shared:
Pre-Judgment Interest
Individual:
$3,369.58
Shared:
