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Fine for bad behaviour: Regulatory Authority fines Morgan Stanley $2M for short-interest violations

According to latest reports, Morgan Stanley, a global financial services company has been fined $2 million for short-interest reporting and rule violations by one of its units for more than six years.

According to Financial Industry Regulatory Authority’s (FINRA) statement, Morgan Stanley failed to “completely and accurately” report its short interest positions in certain securities involving billions of shares.

As understood the reports further deeply, the bank additionally violated a guideline obliging that organizations aggregate their positions in a security to figure out whether they are long or short.

As reports say, the aggregation cannot include security positions of non-broker merchant partners, but Morgan Stanley did as such for more than six years. Furthermore, the bank failed to execute a system that would prevent these violations.

Morgan Stanley is a global financial services company and provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals.

The Company operates in three segments; Institutional Securities, Global Wealth Management Group and Investment Management.