Defendant Name: Morgan Stanley Smith Barney LLC

Defendant Type: Subsidiary of Public Company

Document Reference: 2024-193

Document Details

Legal Case Name In the Matter of Morgan Stanley Smith Barney LLC
Document Name SEC Charges Morgan Stanley Smith Barney for Policy Deficiencies that Resulted in Failure to Prevent and Detect its Financial Advisors' Theft of Investor Funds
Document Date 09-Dec-2024
Document Format Administrative Proceeding
File Number 3-22339
Allegation Type Investment Advisers/Investment Companies
Document Summary On December 9, 2024, the SEC announced that the "Commission today charged Morgan Stanley Smith Barney LLC (MSSB) with failing to reasonably supervise four investment adviser and registered representatives (hereafter, financial advisors) who stole millions of dollars of advisory clients' and brokerage customers' funds and for failing to adopt policies and procedures reasonably designed to prevent and detect such theft."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC
Monetary Penalties:

Civil Penalty

Individual:     $15,000,000.00 Shared:    

Related Documents:

34-101842 09-Dec-2024 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 December 9, 2024, the SEC instituted settled administrative and cease-and-desist proceedings against Morgan Stanley Smith Barney LLC, stating: "These proceedings arise out of Morgan Stanley Smith Barney's failure to adopt and implement policies and procedures reasonably designed to prevent Morgan Stanley Smith Barney personnel from misusing and misappropriating funds from advisory client and brokerage customer accounts."