The watchlist period will last one year, over which time the pension fund, Ohio Public Employees Retirement System, said Morgan Stanley would be ineligible to receive funds from the bond portfolio. After the year is up, Morgan Stanley will be taken off the watchlist as long as it is no longer involved in regulatory action and the pension fund is satisfied.
Last month, Morgan Stanley paid $50 million rather than admit or deny allegations that it did not inform investors about how much money it earned from selling certain mutual funds.