NASD Fines Morgan Stanley $2 Million for Fund Contests

For those Morgan Stanley brokers who thought they were headed for the glory of Tom Cruise in "Days of Thunder," the National Association of Securities Dealers has another idea. NASD has fined Morgan Stanley $2 million for conducting prohibited mutual fund sales contests that offered such outlandish perks as tuition to a racing-car school.

In addition, NASD charged both the firm and Bruce F. Alonso, head of its retail sales division, with supervisory violations. Alonso has been censured and fined $250,000. In settling the accusations, neither Morgan Stanley nor Alonso admitted or denied the charges.