Morgan Stanley Smith Barney became the latest firm to place restrictions on the sale of leveraged, inverse and leveraged inverse exchange-traded funds.

Last Friday, the firm stopped permitting solicited purchases of these three types of ETFs in traditional brokerage accounts. In a statement, MSSB said: “Unsolicited purchases in these accounts will be permitted only subject to enhanced oversight and review. In addition, no purchases of these securities will be permitted in advisory accounts managed by Morgan Stanley Smith Barney financial advisers.”

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.