FINRA sanctions Morgan Stanley for allegedly inaccurate securities trading data.
According to the Financial Industry Regulatory Authority (FINRA), the regulator says it has settled with Morgan Stanley for $875,000 over allegedly inaccurate securities trading data.
From February 2014 through April 2017, the firm allegedly submitted at least 869 blue sheets that contained inaccuracies to both FINRA and the SEC , purportedly misreporting data on at least 156,678 options transactions, according to a Letter of Acceptance, Waiver and Consent (AWC) posted on FINRA’s website today.
According to the AWC, FINRA says it first learned that there were errors in late 2016 when it found blue sheet submissions that were inconsistent with customer account statements. Morgan Stanley determined that the cause of the inaccuracies was human error, according to FINRA.
Further, FINRA found other inconsistencies that led to the discovery of two coding issues that caused Morgan Stanley to misreport on whether options transactions were open or closed.
Morgan Stanley agreed to the censure and fine without admitting or denying the findings, according to the AWC.
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Tags: Morgan Stanley AWC, Morgan Stanley fined, Morgan Stanley FINRA, Morgan Stanley sanctioned, Securities Attorney, securities law Last modified: July 9, 2020