Morgan Stanley To Pay Penalty Over SEC Claims

Law360, New York (July 20, 2009, 9:14 PM EDT) -- Morgan Stanley & Co. Inc. has agreed to pay a $500,000 penalty to resolve U.S. Securities and Exchange Commission claims that the firm and one of its former investment advisers misled clients about certain money managers they recommended and failed to disclose conflicts of interest.

The SEC announced the settlement in a statement Monday, saying Morgan Stanley had breached its fiduciary duty to advisory clients of its Nashville, Tenn., branch by misrepresenting a program it offered to assist them in developing investment objectives and selecting money...
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