The US Financial Industry Regulatory Authority (FINRA) fines Morgan Stanley $1 million and ordered another $188,000 in restitution plus interests for its failure to provide the best execution and a fair price in customer transactions.
The US Financial Industry Regulatory Authority (FINRA) has fined Morgan Stanley $1 million and ordered another $188,000 in restitution plus interests for its failure to provide the best execution and a fair price in customer transactions.
FINRA, the largest independent regulator for all securities firms doing business in the US, said Thursday it found that Morgan Stanley failed to ensure that the purchase or sale price to the customer was as favourable as possible under current market conditions in 116 customer transactions, involving corporate and agency bonds.
The industry watchdog also found that in 165 transactions, involving municipal bonds, Morgan Stanley failed to purchase or sell bonds at prices reasonably related to the fair market value, reports Xinhua.
“Firms must ensure that customers who buy and sell securities receive execution prices that are consistent with prices available in the marketplace,” said Thomas Gira, executive vice president of FINRA Market Regulation.
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