Morgan Stanley To Pay SEC $10M

Law360, New York (June 27, 2006, 12:00 AM EDT) -- Morgan Stanley will pay $10 million to end an enforcement action brought by the U.S. Securities and Exchange Commission that alleged the financial services powerhouse didn’t do enough to staunch the misuse of insider information.

The SEC’s legal action, which was initiated and simultaneously settled Tuesday, centered on Morgan Stanley & Co. Inc. and Morgan Stanley DW Inc.’s surveillance of employee accounts, as well as the company’s written policies relating to surveillance.

"Establishing and enforcing adequate written policies and procedures to detect potential insider trading at...
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