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“For tracking litigation, enforcement, and regulatory developments, Compliance Week
should be your prime source.”- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
SEC drops Morgan Stanley cash sweep case: Sign of the times?
By 
Aaron Nicodemus2025-05-08T21:43:00
A decision by the Securities and Exchange Commission (SEC) to close an investigation into the cash sweep program at Morgan Stanley may affect decision-making at other financial institutions under similar scrutiny.
The SEC informed Morgan Stanley in March that it had closed its investigation into the firm’s cash sweep program without recommending an enforcement action, Morgan Stanley disclosed in a 10-Q Monday.
When contacted, a Morgan Stanley spokesperson said the firm had no additional comment. Morgan Stanley had previously disclosed the existence of the SEC investigation in August 2024.
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