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Finra Fines Morgan Stanley $1.5 Million

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morgan-stanley-fraud-1Finra Fines Morgan Stanley $1.5 Million for Failing to Deliver Fund Prospectuses Online.

During one nine-month period, the firm failed to deliver close to 2.1 million prospectuses to online customers because of a missing link.
Morgan Stanley Smith Barney was fined $1.5 million on by the Financial Industry Regulatory Authority Inc., Finra, for failing to insure that its customers could access fund prospectuses.
For several years prior to 2013, Morgan Stanley made required prospectuses available to clients online.   According to the Finra settlement, Morgan Stanley in November 2013 updated its systems but failed to ensure an appropriate online link was installed for clients who wanted to review certain fund prospectuses.   In August 2014, a customer seeking to view an online prospectus contacted the firm, causing staff to learn that the prospectus link was not present, according to the settlement.  During a nine-month period, the firm failed to deliver close to 2.1 million prospectuses to online customers via its “view prospectus” link.
From November 2013 to December 2014, due to a coding error, Morgan Stanley also failed to generate and send about 23,500 investment objective change letters to clients, according to Finra. According to industry rules, broker-dealers are required to confirm in writing to customers any changes made to a client’s investment objectives within 30 days of such a change.
Also, from June 2012 to June 2016, the firm failed to send at least 4,000 letters to customers confirming changes in their investment objectives within 30 days of the change.  These are significant confirming letters that the firm would seek to rely upon to defend itself from customer complaints.
If you have losses in your account, with Morgan Stanley, Morgan Stanley Smith Barney, or Citigroup Global Markets, call (888) 986-7199 or write the investment recovery lawyers at StockBrokerLawyer.com for a free no-cost consultation.  We can help recover your losses and seek other damages, too.
You can use the email form or chat on StockBrokerLawyer.com   You may be entitled to recover  your losses.   We work on contingency: we are paid only when you are paid.   Time is limited; delay is the favorite defense of the brokerage firms.   Call 888-986-7199 now to speak to an attorney for a no cost evaluation.


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