Morgan Stanley To Pay SEC $5M Over Wrap Fee Accounts

By Reenat Sinay (May 12, 2020, 10:59 AM EDT) -- Morgan Stanley Smith Barney LLC will fork over a $5 million fine to the U.S. Securities and Exchange Commission to resolve claims that it misled some retail investors about fees for brokerage services and investment advice, according to an administrative order filed Tuesday.

A Morgan Stanley unit has agreed to pay the SEC $5 million in fines over claims it misled retail investors about wrap fees. (AP Photo/Richard Drew) The SEC said that from October 2012 to June 2017, the Morgan Stanley wealth management unit was negligent in offering "incomplete and inaccurate information" to clients who had "wrap fee" accounts about...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!