FINRA has fined Morgan Stanley Smith Barney $1 million and ordered another $371,000 in restitution and interest to customers for excessive markups and markdowns charged to customers on corporate and municipal bond transactions as well as other supervision violations.

The regulator claims that Morgan Stanley charged markups and markdowns ranging from below 5% to 13.8% on corporate and municipal bond transactions, which were "higher than warranted given factors including market conditions, the cost of executing the transactions and the value of the services rendered to the customers."

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