A lack of supervision and internal controls at Morgan Stanley Smith Barney (MSSB) allowed four of its investment advisers to steal millions from customers before the behavior was detected, the SEC said Tuesday in charging the firm.

Federal laws make it illegal for investment advisers to remove money from their clients’ accounts without their express permission. Advisers are not permitted to move client funds into their personal accounts.

Adrianne Appel writes regulatory news, policy, and trends for Compliance Week. She previously reported about policy developments for Bloomberg Law and Bloomberg Government. Email: adrianne.appel@complianceweek.com LinkedIn:...