Morgan Stanley, November 16, 2011

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On November 16, 2011, the U.S. Securities and Exchange Commission (SEC) charged Morgan Stanley's investment management unit with violating securities laws in a bad fee arrangement.<ref>SEC Charges Morgan Stanley Investment Management for Improper Fee Arrangement. SEC. Retrieved on November 16, 2011.</ref>

Charges[edit]

From the release:

"The SEC’s Enforcement Division Asset Management Unit has been focused on fee arrangements with registered funds. The SEC’s investigation found that MSIM — the primary investment adviser to The Malaysia Fund — represented to investors and the fund’s board of directors that it contracted a Malaysian-based sub-adviser to provide advice, research and assistance to MSIM for the benefit of the fund, which invests in equity securities of Malaysian companies. The sub-adviser did not provide these purported advisory services, yet the fund’s board annually renewed the contract based on MSIM’s representations for more than a decade at a total cost of $1.845 million to investors."

On November 16, 2011, Morgan Stanley agreed to pay $3.3 million in penalties to settle the charges.<ref>Morgan Stanley Settles SEC Case. WSJ. Retrieved on November 16, 2011.</ref>

Related Documents[edit]

References[edit]

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