The New York City-based brokerage firm and its executive were charged with improperly offering brokers more than $1 million in prizes through internal sales contests. The prizes were intended to boost Morgan Stanley's sales of in-house mutual funds and variable annuities.
Morgan Stanley and Bruce Alonso, a managing director who oversees the firm's branch network, settled the charges without admitting or denying the allegations, the Wall Street Journal reported.
As part of the settlement, the company agreed to pay a $2 million fine, and Alonso will pay a $250,000 fine.
NASD rules prohibit broker contests intended to boost sales of specific products.
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