{"id":4171,"date":"2017-02-14T14:19:59","date_gmt":"2017-02-14T20:19:59","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4171"},"modified":"2022-06-16T11:31:56","modified_gmt":"2022-06-16T16:31:56","slug":"4171-2","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/4171-2\/","title":{"rendered":"Morgan Stanley to Pay $8M To Settle Exchange Traded-Fund Investment Charges"},"content":{"rendered":"<p>Morgan Stanley Smith Barney (MS) has consented to pay a penalty of $8M to resolve Securities and Exchange Commission charges accusing the firm of wrongdoing involving single inverse exchange-traded fund investments. Morgan Stanley admitted wrongdoing as part of the settlement.<\/p>\n<p>According to the SEC\u2019s order, Morgan Stanley failed to adequately put into place procedures an policies to make sure that clients comprehended the risks involved in buying inverse ETFs and did not procure signatures from several hundred clients on a client disclosure notice that stated that these ETFs are usually not suitable for investors intending to keep them longer than a trading session unless the securities are part of a hedging or trading strategy.<\/p>\n<p>Morgan Stanley persuaded investors to buy single inverse ETFs in accounts, including retirement accounts. Securities were held-long term. As a result, many of these advisory clients suffered losses.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/4171-2\/#more-4171\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Morgan Stanley Smith Barney (MS) has consented to pay a penalty of $8M to resolve Securities and Exchange Commission charges accusing the firm of wrongdoing involving single inverse exchange-traded fund investments. Morgan Stanley admitted wrongdoing as part of the settlement. According to the SEC\u2019s order, Morgan Stanley failed to adequately put into place procedures an [&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":[4023,3752,3787],"tags":[],"class_list":["post-4171","post","type-post","status-publish","format-standard","hentry","category-exchange-traded-funds","category-financial-firms","category-morgan-stanley"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Morgan Stanley Smith Barney (MS) Agreed To Pay a Penalty of $8M<\/title>\n<meta name=\"description\" content=\"Morgan Stanley Smith Barney (MS) has consented to pay a penalty of $8M to resolve Securities and Exchange Commission charges accusing the firm of &#8212; February 14, 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\/4171-2\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Morgan Stanley Smith Barney (MS) Agreed To Pay a Penalty of $8M\" \/>\n<meta name=\"twitter:description\" content=\"Morgan Stanley Smith Barney (MS) has consented to pay a penalty of $8M to resolve Securities and Exchange Commission charges accusing the firm of &#8212; February 14, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Morgan Stanley Smith Barney (MS) Agreed To Pay a Penalty of $8M","description":"Morgan Stanley Smith Barney (MS) has consented to pay a penalty of $8M to resolve Securities and Exchange Commission charges accusing the firm of &#8212; February 14, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/4171-2\/","twitter_card":"summary_large_image","twitter_title":"Morgan Stanley Smith Barney (MS) Agreed To Pay a Penalty of $8M","twitter_description":"Morgan Stanley Smith Barney (MS) has consented to pay a penalty of $8M to resolve Securities and Exchange Commission charges accusing the firm of &#8212; February 14, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/4171-2\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/4171-2\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Morgan Stanley to Pay $8M To Settle Exchange Traded-Fund Investment Charges","datePublished":"2017-02-14T20:19:59+00:00","dateModified":"2022-06-16T16:31:56+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/4171-2\/"},"wordCount":563,"articleSection":["Exchange Traded Funds","Financial Firms","Morgan Stanley"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/4171-2\/","url":"https:\/\/www.investorlawyers.com\/blog\/4171-2\/","name":"Morgan Stanley Smith Barney (MS) Agreed To Pay a Penalty of $8M","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2017-02-14T20:19:59+00:00","dateModified":"2022-06-16T16:31:56+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Morgan Stanley Smith Barney (MS) has consented to pay a penalty of $8M to resolve Securities and Exchange Commission charges accusing the firm of &#8212; 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