The SEC asked Morgan Stanley about multiple significant deficiencies in its financial reporting after the firm corrected accounting errors involving loan cash flows, income taxes and derivatives contracts.
Morgan Stanley said that while its Sarbanes-Oxley program identified defects that affected risk assessment and monitoring controls, the overall design and operation of its control framework was effective, according to letters between the company and regulator that were released today.
Deficiencies were caught in a timely manner and errors werent material, the New York-based firm said in the letters.
The correspondence cited passages that included Morgan Stanleys 10-K annual report for 2012. The SEC said its review was completed in an Oct. 17 letter.
Wesley McDade, a spokesman for Morgan Stanley in New York, declined to comment on the filings.