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Morgan Stanley to pay $50B abuse fine

Nov. 17, 2003 at 12:12 PM   |   Comments

WASHINGTON, Nov. 17 (UPI) -- The Securities and Exchange Commission said it will charge brokers Morgan Stanley $50 million in fines Monday for abuses in mutual fund sales.

The SEC said that brokers at Morgan Stanley received financial incentives to sell mutual funds of investment companies, which then would direct business back to the brokerage house.

The SEC said the practice betrayed the trust of investors, as brokers were set on serving the interest of Morgan Stanley itself, rather than looking out for the best interest of their clients, who had bought up mutual funds.

© 2003 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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