Morgan Stanley will pay $8 million and admit to wrongdoing in a settlement with the SEC for failing to follow its own compliance policies to ensure clients understood the risks involved with purchasing single-inverse ETFs.

The firm solicited clients to purchase the investments over a five year period, but failed to obtain a signed client disclosure notice from several hundred clients, according to the SEC.

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access