Rhode Island has fined Morgan Stanley $250,000 for not supervising two Providence brokers who, regulators said, engaged in unethical and dishonest practices when selling mutual funds and variable annuities, Reuters reports.
The fine stems from an investigation begun three years ago following complaints from four investors. In one instance, an investor said a broker sold them low-cost products but them moved them into far more expensive ones. In another, the same broker sold an annuities to an 80-year-old.
The other broker failed to obtain breakpoints for a client.
Morgan Stanley agreed to the findings of the case without admitting or denying wrongdoing, but did review transactions that the brokers handled.