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Money Management Executive

Morgan Expected to Settle With SEC Today

Published November 17, 2003, 1:00 a.m. EST
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Updated November 17, 2003, 1:00 a.m. EST
1 Min Read

Morgan Stanley as early as today will settle with the SEC for accepting payments from mutual fund companies to sell their products, without properly disclosing this revenue sharing, to customers, The New York Times reports.

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Besides giving Morgan Stanley brokers these incentives, fund companies also directed trade orders their way. The SEC is expected to fine the firm $50 million.

Meanwhile Alliance Capital and Bear Stearns have fired a number of employees for mutual fund market timing, Reuters reports. Alliance will take a $190 million charge related to an internal investigation and force a number of employees in its distribution unit to resign. Alliance also said it will disclose more on this investigation in its 10-Q.

Bear Stearns has fired six employees, four brokers and two assistants, for market timing.

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The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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