FINRA Fines Morgan Stanley $1M Over Markups, Markdowns

Law360, New York (November 10, 2011, 1:20 PM EST) -- The Financial Industry Regulatory Authority on Thursday fined Morgan Stanley and Morgan Stanley Smith Barney LLC $1 million and ordered them to pay $371,000 in restitution for charging excessive markups and markdowns to customers on corporate and municipal bond transactions.

Morgan Stanley made the markups and markdowns of between 5 percent and 13.8 percent, which were higher than warranted considering market conditions, the cost of executing the transactions and the value of the services rendered, FINRA said.

“Firms must ensure that customers who buy and sell...
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