Defendant Name:
Morgan Stanley Investment Management Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Morgan Stanley
SIC Code:
6211
CUSIP:
61744644
Document Reference:
IA-3315
Document Details
Legal Case Name
In the Matter of Morgan Stanley Investment Management Inc.
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, and Sections 9(b) and 9(f) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
16-Nov-2011
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On November 16, 2011, the SEC instituted settled administrative and cease-and-desist proceedings against Morgan Stanley Investment Management, Inc. ("MSIM"). According to the SEC: "These proceedings arise out of certain investment advisory fees improperly charged to a registered fund from 1996 to 2007. MSIM, the primary investment adviser to The Malaysia Fund, Inc. ('Fund'), represented to investors and the Fund's board of directors ('Board') that the Fund's Malaysian sub-adviser was providing certain services that the sub-adviser in fact was not providing. The Board approved the sub-adviser's fees each year based on MSIM's representations. As a result, the Fund paid approximately $1.8 million to the sub-adviser between 1996 and the end of 2007 (the 'relevant time period') for advisory services it did not receive. In early 2008, after Commission examination staff inquired into the Fund's relationship with the sub-adviser, the sub-adviser's services were terminated."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
Various undertakings
Monetary Penalties:
Civil Penalty
Individual:
$1,500,000.00
Shared:
