Morgan Stanley, November 16, 2011
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.
- SEC Charges Morgan Stanley Investment Management for Improper Fee Arrangement. SEC. Retrieved on November 16, 2011.
- Morgan Stanley Settles SEC Case. WSJ. Retrieved on November 16, 2011.