Morgan Stanley gets NASD fines

6 September 2006

Two units of the Morgan Stanley investment bank have been fined a total of nearly $3 million by the NASD for what it describes as "extensive violations" of various NASD and Securities and Exchange Commission regulations.

Fines totaling $2.9 million have been handed out as punishment for reporting violations as well as other failures to adequately insure that securities laws were adhered to.

On top of paying the fines, the two units – Morgan Stanley & Co (MSCO) and Morgan Stanley DW (MSDW) – will be required to demonstrate that internal procedures have been sufficiently improved.

"MSCO and MSDW had numerous types of reporting violations and the scope of those violations indicated a failure to adequately address compliance needs of the firms," said NASD executive vice president Tom Gira.

"But MSCO and MSDW also undertook independent, internal reviews to determine the causes and extent of their trade reporting problems, provided their findings to NASD, and were otherwise highly cooperative with NASD's investigation."

He added that the sanctions reflected this cooperation.

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