Securities Law Updates | New Releases/No Action Letters
August 30, 2010
FINRA Fines Morgan Stanley $800,000 for Deficient Conflict of Interest Disclosures in Equity Research Reports and Public Appearances by Research Analysts
In re: FINRA’s Action Against Morgan Stanley & Co., Inc.
BD 8209, 8/10/2010
The Financial Industry Regulatory Authority (“FINRA”) has censured and fined Morgan Stanley & Co., Inc. $800,000 for failing to make public disclosures required by FINRA’s rules governing research analyst conflicts of interest. The firm also failed to comply with a key provision of the 2003 Research Analyst Settlement by failing to disclose the availability of independent research in customer account statements.
In addition to the censure and fine, Morgan Stanley must review a sample of its research reports and certify to FINRA that they comply with FINRA’s research analyst conflict-of-interest rules. These reviews and certifications must take place every six months…
To continue reading this article, subscribe now
It's FREE and only takes seconds
