{"id":6084,"date":"2016-12-21T19:54:56","date_gmt":"2016-12-22T01:54:56","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1301"},"modified":"2016-12-21T19:54:56","modified_gmt":"2016-12-22T01:54:56","slug":"morgan-stanley-settles-margin-account-related-violations-finra-sec-10-3m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-settles-margin-account-related-violations-finra-sec-10-3m\/","title":{"rendered":"Morgan Stanley Settles Margin Account-Related Violations with FINRA & The SEC for $10.3M"},"content":{"rendered":"

\t\t\t\tTwo US regulators have fined Morgan Stanley (MS) <\/a>for margin account violations that purportedly resulted in the firm using customer funds and securities for its benefit. The US Securities and Exchange Commission fined the firm $7.5M, while the Financial Industry Regulatory Authority imposed a $2.75M fine.<\/p>\n

According to the SEC, Morgan Stanley used trades that involved customer money to decrease its borrowing costs. The Commission said that this violates the agency\u2019s Customer Protection rule, which is meant to keep customer money and securities safe so that they can be given back to customers in the event that a brokerage firm were to fail.<\/p>\n

The SEC said that from 5\/2013 to 5\/2015, the firm’s broker-dealer in the US used transactions with an affiliate to decrease the amount it had to deposit in its customer reserve account. Under the Customer Protection Rule, brokerage firms are not allowed to use affiliates to lower their customer reserve account deposit requirements.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Two US regulators have fined Morgan Stanley (MS) for margin account violations that purportedly resulted in the firm using customer funds and securities for its benefit. The US Securities and Exchange Commission fined the firm $7.5M, while the Financial Industry Regulatory Authority imposed a $2.75M fine. According to the SEC, Morgan Stanley used trades that […]<\/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":[3752,3787,3760,3761],"tags":[],"class_list":["post-6084","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-morgan-stanley","category-sec-enforcement","category-securities-and-exchange-commis"],"yoast_head":"\nMorgan Stanley Settles Margin Account-Related Violations with FINRA & The SEC for $10.3M — Investor Lawyers Blog — December 21, 2016<\/title>\n<meta name=\"description\" content=\"Two US regulators have fined Morgan Stanley (MS) for margin account violations that purportedly resulted in the firm using customer funds and securities — December 21, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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