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Morgan Stanley to pay USD 5 mln fine

Thursday 14 May 2020 12:50 CET | News

A unit of Morgan Stanley has agreed to pay a USD 5 million fine to settle US Securities and Exchange Commission charges.

It comes after the bank misled retail investing clients about the costs of a ‘wrap fee’ program, according to Fox Business.

Wrap fee programs offer accounts in which clients pay asset-based fees meant to cover investment advice and brokerage services, including the execution of trades. Morgan Stanley oversaw USD 2.4 trillion of client assets, including USD 1.13 trillion from fee-based clients, as of March 31.

The alleged wrongdoing occurred from October 2012 to June 2017, and the USD 5 million will be distributed to harmed investors.


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Keywords: SEC, Morgan Stanley, banks, US, Securities and Exchange Commission, retail, wrap fee
Categories: Banking & Fintech | Payments General
Countries: United States
This article is part of category

Banking & Fintech