PROVIDENCE – Securities broker Morgan Stanley & Co. Inc., formerly Morgan Stanley DW Inc., has paid a civil penalty of $250,000, the R.I. Department of Business Regulation announced today.
The company was fined “for failing to supervise sales representatives who engaged in unethical and dishonest practices in the sale of mutual funds and variable annuities at its Providence office,” DBR Director A. Michael Marques said in a statement.
Besides paying the civil penalty, Morgan Stanley agreed to undertake a comprehensive review of the sales practices of those two representatives, “to ensure there are no other violations of the securities statutes and rules involving other clients,” the DBR said.
The settlement followed a “lengthy” probe by the DBR’s Securities Division, the agency said. Maria D’Alessandro, associate director and superintendent of securities, said the investigation uncovered violations of the Securities Act over a three-year period.
“Morgan Stanley failed to ensure that there were adequate procedures in place reasonably designed to prevent these unlawful practices,” D’Alessandro said.
For more information, visit www.dbr.state.ri.us.
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