- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-02-16T19:21:00
Morgan Stanley will pay a $1.6 million fine levied by the Financial Industry Regulatory Authority (FINRA) for failing to close out certain municipal securities transactions over a five-year period.
In its letter of acceptance with Morgan Stanley Smith Barney, the wealth and asset management arm of Morgan Stanley, FINRA said that from December 2016 through August 2021, the firm did not cancel or close out 239 failed interdealer municipal securities transactions totaling approximately $9 million within 20 calendar days after settlement date.
The firm also failed to take prompt steps to obtain physical possession or control of 247 short positions in municipal securities totaling approximately $9.4 million resulting from failed interdealer municipal securities transactions, said FINRA in the letter, which it published Thursday.
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