SEC fines Morgan Stanley $15M to settle allegations of theft of client funds
By 
Adrianne Appel2024-12-10T18:35:00
A lack of supervision and internal controls at Morgan Stanley Smith Barney (MSSB) allowed four of its investment advisers to steal millions from customers before the behavior was detected, the SEC said Tuesday in charging the firm.
Federal laws make it illegal for investment advisers to remove money from their clients’ accounts without their express permission. Advisers are not permitted to move client funds into their personal accounts.
MSSB, which agreed to pay $15 million to settle the matter, also failed to adopt policies and procedures until December 2022 to prevent and discover thefts by employees, the SEC said.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefMorgan Stanley fined $1.6M by FINRA over municipal securities closeouts
Morgan Stanley will pay a $1.6 million fine levied by the Financial Industry Regulatory Authority for failing to close out certain municipal securities transactions over a five-year period.
-
News BriefMorgan Stanley settles with states for $6.5M over mishandled data
Morgan Stanley agreed to pay $6.5 million as part of a settlement with six states requiring the firm to strengthen its data security after actions it took compromised the personal data of millions of customers.
-
ArticleCompliance deficiencies highlighted in $1.8B crackdown on messaging apps
Eleven banks, investment firms, and their affiliates will pay a total of more than $1.8 billion in fines for “widespread and longstanding failures” in monitoring, maintaining, and preserving electronic communications by employees.
More from Regulatory Enforcement
-
News BriefTrump’s CFPB, dismissing Comerica case, continues to cut down Biden-era lawsuits
The Consumer Financial Protection Bureau dropped yet another consumer protection lawsuit against a bank or fintech provider since Donald Trump was sworn in as president in January. This time, it was with Comerica Bank.
-
News BriefCash App parent to pay $40 million for alleged BSA/AML violations in New York
Block Inc., maker of the popular Cash App, has been hit with a $40 million fine by New York for its alleged failure to report suspicious activity. The move marks the latest in a string of recent state and federal enforcement actions against the company.
-
News BriefDOJ disbands crypto investigation unit, another sign of the Trump administration’s support of digital currency
The U.S. Department of Justice (DOJ) disbanded its crypto investigation unit on Monday, marking another step from President Donald Trump to support the crypto industry and lighten the regulatory burden of potential crypto crime investigations that had started under the Biden administration.