{"id":4106,"date":"2017-01-17T18:02:07","date_gmt":"2017-01-18T00:02:07","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4106"},"modified":"2022-03-25T13:19:27","modified_gmt":"2022-03-25T18:19:27","slug":"sec-cases-morgan-stanley-pay-13m-custody-rule-violations-overbilling-clients-bny-mellon-pay-6-6m-miscalculations-purportedly-reported-investors-citadel-securities-pay","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-cases-morgan-stanley-pay-13m-custody-rule-violations-overbilling-clients-bny-mellon-pay-6-6m-miscalculations-purportedly-reported-investors-citadel-securities-pay\/","title":{"rendered":"SEC Cases: Morgan Stanley to Pay $13M for Custody Rule Violations and Overbilling Clients, BNY Mellon to Settles Allegations of Reported Miscalculations By Paying $6.6M, and Citadel Securities to Pay $22M for Purportedly Misleading Clients About Pricing Trades"},"content":{"rendered":"<p>\t\t\t\t<strong>Morgan Stanley Accused of Overbilling Investment Advisory Clients<\/strong><\/p>\n<p>The US Securities and Exchange Commission announced that Morgan Stanley Smith Barney (MS) will pay a $13M penalty to resolve charges accusing the firm of <a href=\"https:\/\/www.stockbroker-fraud.com\">overbilling clients <\/a>through billing system and coding mistakes and violating the custody rule regarding yearly surprise exams.<\/p>\n<p>As a result, said the regulator\u2019s order, Morgan Stanley has agreed to pay over $16M in excess fees because of billing mistakes that took place from \u201902 to \u201916. Investment advisory clients that were affected have been paid back the excess fees in addition to interest.<\/p>\n<p>According to the Commission, Morgan Stanley overcharged over 149,000 investment advisory clients. The reason for this is that the firm did not put into place compliance policies and procedures that were designed reasonably enough to make sure that clients were accurately billed according to their advisory agreements. The SEC said that Morgan Stanley did not validate billing rates that were in its billing system against client billing histories, contracts, and other documents.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-cases-morgan-stanley-pay-13m-custody-rule-violations-overbilling-clients-bny-mellon-pay-6-6m-miscalculations-purportedly-reported-investors-citadel-securities-pay\/#more-4106\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Morgan Stanley Accused of Overbilling Investment Advisory Clients The US Securities and Exchange Commission announced that Morgan Stanley Smith Barney (MS) will pay a $13M penalty to resolve charges accusing the firm of overbilling clients through billing system and coding mistakes and violating the custody rule regarding yearly surprise exams. As a result, said the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4012,3773,3781,3738,3787,3801,3760,3741],"tags":[2691],"class_list":["post-4106","post","type-post","status-publish","format-standard","hentry","category-bny-mellon-capital-markets-llc","category-broker-fraud","category-investment-advisers","category-investor-fraud","category-morgan-stanley","category-sec","category-sec-enforcement","category-securities-fraud","tag-citadel-securities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Cases: Morgan Stanley to Pay $13M for Custody Rule Violations and Overbilling Clients, BNY Mellon to Settles Allegations of Reported Miscalculations By Paying $6.6M, and Citadel Securities to Pay $22M for Purportedly Misleading Clients About Pricing Trades &#8212; Investor Lawyers Blog &#8212; January 17, 2017<\/title>\n<meta name=\"description\" content=\"Morgan Stanley Accused of Overbilling Investment Advisory Clients The US Securities and Exchange Commission announced that Morgan Stanley Smith Barney &#8212; January 17, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-cases-morgan-stanley-pay-13m-custody-rule-violations-overbilling-clients-bny-mellon-pay-6-6m-miscalculations-purportedly-reported-investors-citadel-securities-pay\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Cases: Morgan Stanley to Pay $13M for Custody Rule Violations and Overbilling Clients, BNY Mellon to Settles Allegations of Reported Miscalculations By Paying $6.6M, and Citadel Securities to Pay $22M for Purportedly Misleading Clients About Pricing Trades &#8212; 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