CFTC Fines Morgan Stanley Unit $490,000
Morgan Stanley Smith Barney will pay a $490,000 penalty to settle the U.S. Commodity Futures Trading Commission’s charges that it violated rules about keeping certain funds separate.
The commission says the Morgan Stanley business unit erroneously transferred $16 million from a customer’s account last year but fixed the error the next day. It also says that during 2012, the firm comingled customer and firm funds in a customer account, made errors in its daily computation of funds and improperly titled four of the firm’s accounts as customer accounts.
The company said in a statement Thursday that no customer lost any money as a result of the issues. It noted that it hired an outside auditor to review its procedures, and made required improvements.
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