Morgan Stanley reaches $200M agreement over unauthorized electronic messages
Morgan Stanley has reached agreements in principle totaling $200 million with two U.S. regulators to settle charges its employees used messaging platforms not approved by the financial services company.
In a regulatory filing Friday, Morgan Stanley said it reached a $125 million agreement with the Securities and Exchange Commission (SEC) and will pay an additional $75 million to the Commodity Futures Trading Commission (CFTC) “to resolve record-keeping related investigations by those agencies relating to business communications on messaging platforms that had not been approved by the firm.”
The impending enforcement action follows a similar case announced in December, in which JPMorgan Chase was fined a total of $200 million by the SEC and CFTC for failure to maintain records of communications on securities, commodities, and swaps business matters made on bank employees’ personal devices. The regulators concluded the practice occurred over several years and was widespread among all levels of employees, including at the senior level.