State securities regulators are turning up the heat on Morgan Stanley after discovering it provided false and misleading information about its mutual fund sales practices.

In a complaint filed last Monday, Massachusetts' securities division alleged the New York-based brokerage giant improperly pressured brokers and branch managers to sell proprietary mutual funds to investors, who were unaware that their brokers received additional compensation for pitching in-house funds. Additionally, the firm is accused of failing to provide accurate information to regulators upon request. The claim seeks a cease and desist order on such practices and requests a $1 million fine for its conduct.

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