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:
34-78021
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 15(b) and 21C 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
Document Date
08-Jun-2016
Document Format
Administrative Proceeding
Allegation Type
Broker Dealer
Document Summary
On June 8, 2016, the SEC instituted settled administrative and cease-and-desist proceedings against Morgan Stanley Smith Barney LLC ("MSSB"). According to the SEC: "This proceeding arises out of MSSB's failure to adopt written policies and procedures reasonably designed to protect customer records and information, in violation of Rule 30(a) of Regulation S-P (17 C.F.R. § 248.30(a)) (the 'Safeguards Rule'). From at least August 2001 through December 2014, MSSB stored sensitive personally identifiable information ('PII') of individuals to whom MSSB provided brokerage and investment advisory services (referred to herein as "customers") on two of the firm's applications: the Business Information System ("BIS") Portal and the Fixed Income Division Select ('FID Select') Portal (collectively, 'the Portals'). Galen Marsh ('Marsh'), then an MSSB employee, misappropriated data regarding approximately 730,000 customer accounts, associated with approximately 330,000 different households, by accessing the Portals between 2011 and 2014. The misappropriated data included PII, such as customers' full names, phone numbers, street addresses, account numbers, account balances and securities holdings."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Civil Penalty
Individual:
$1,000,000.00
Shared:
