FINRA Fines Morgan Stanley for Neglect During Financial Crisis
Morgan Stanley (NYSE:MS) has been fined a $1 million penalty plus $188,000 in restitution for failing to provide due diligence on 281 customer transactions during the financial crisis. The Financial Industry Regulatory Authority — a private, non-governmental corporation that acts as a regulator for much of the financial industry — found that Morgan Stanley failed “to provide a fair and reasonable price in certain customer transactions.”
Thomas Gira, FINRA’s executive vice president of market regulation, said in a statement: ”Firms must ensure that customers who buy and sell securities — including corporate, agency, and municipal bonds — receive execution prices that are consistent with prices available in the marketplace. FINRA will continue to sanction firms that execute fixed income transactions for their customers at unfair prices, and will require firms that violate such standards to reimburse customers.”
As part of the deal, Morgan Stanley did not have to confirm or deny any charges.