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Morgan Stanley Fined $1 Million By FINRA Over Bond Transaction Prices
Eliane Chavagnon
23 August 2013
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|) Morgan Stanley neither admitted nor denied the charges, but consented
to the entry of FINRA’s findings, the authority said.