Morgan Stanley Smith Barney fined $1.5m for inadequate supervision

Firm found to have no policy or procedure in place that could have detected misappropriation of $10m.

The SEC said that a failure of oversight over Morgan Stanley Smith Barney’s (MSSB’s) financial advisers led to millions of dollars of client funds being stolen over several years, and it has charged MSSB a $15m penalty to settle charges.

MSSB was charged with failing to reasonably supervise Michael Carter,

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