US News – CFTC fines Morgan Stanley $280k – 17th Sept2014
The Commodity Futures Trading Commission has fined Morgan Stanley $280,000 over problems with monitoring customers’ accounts for suspicious activity. The agency said on Monday in announcing the action Morgan Stanley failed to supervise the handling of accounts that were related to a group of companies called SureInvestment, which was later found to be linked to a Ponzi scheme. It is the the latest enforcement action the CFTC has issued against a big bank for its compliance failures. Morgan Stanley agreed to settle the charges without admitting or denying the findings. As the CFTC completes its rule writing for the Dodd-Frank Act, it has sharpened its focus on compliance and enforcement. In July, the CFTC fined JP Morgan $650,000 for producing inaccurate large-trader reports. In August, it fined Merrill Lynch $1.2 million to settle charges that it overcharged some clients when it processed their exchange and clearing fees.