FINRA yesterday fined Morgan Stanley Smith Barney and Morgan
Stanley & Co $1 million and ordered them to pay $188,000 in restitution, plus
interest, for failing to provide “best execution” in 116 customer transactions
involving corporate and agency bonds.

The bank also failed to provide a “fair and reasonable price”
in 165 transactions involving municipal bonds, the authority said in a
statement.

“The requirement to pay restitution is in addition to
restitution that Morgan Stanley paid previously to customers for transactions
covered by this settlement,” it noted.

Morgan Stanley neither admitted nor denied the charges, but consented
to the entry of FINRA’s findings, the authority said.