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Morgan Stanley Smith Barney To Pay $200,000 For Failures To Supervise 

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The U.S. Commodity Futures Trading Commission issued an Order settling its charges that Morgan Stanley Smith Barney violated the egulations by failing to supervise its employees’ handling of customer accounts.  This means that Morgan Stanley did not follow the minimum required regulations for watching what their brokers were doing for customers in their accounts.  Supervision is one of the most important things that a stockbrokerage firm does to protect its customers from the improper actions of the firm’s employees, the stockbrokers.

The CFTC Order requires Morgan Stanley to pay a $200,000 civil monetary penalty and prohibits it from violating  CFTC regulations.  According to the regulator’s Order, Morgan Stanley’s employees failed to diligently investigate the suspicious transactions.  At the time of the above-described events, the respondent maintained an unsatisfactory and lacking of supervision and internal controls.  Without the proper controls, Morgan Stanley failed to fully  supervise its employees, the stockbrokers.
The harm to the customer’s who had brokers with inadequate supervision was not addressed by the regulator.  The regulators, the CFTC, Finra, and the SEC, sometimes fine and penalize firms for failing to comply with regulations.  But the regulators rarely, and did not here against Morgan Stanley, do anything to help damaged customers regain investment losses, in their accounts.  So even though the regulator found confirmed improper actions by a major firm, there is no money compensation to the customers.  This is another reason why you should have StockBrokerLawyer.com review your account and advise you if there are losses that you should not have suffered.

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