Morgan Stanley Charged with Unethical Sale’s Practices
Posted on Friday, October 7th, 2016 at 1:40 pm
A firm contest incentivized about 30 advisers to push lending products to clients and created conflicts of interest, according to Secretary of the Commonwealth of Massachusetts William F. Galvin.
“Massachusetts regulators accused Morgan Stanley of dishonest and unethical conduct related to alleged high-pressure sales contests… charges that the firm hotly denies.”
The regulatory action is the latest instance of regulators upping their scrutiny of firms’ sales practices. Last month, Wells Fargo paid $185 million in fines after authorities charged that an aggressive sales culture spurred employees to open unauthorized accounts on behalf of clients…”